ABB Power locked in 5% upper circuit for second day after market debut

ABB Switzerland and Hitachi have together launched an open offer to acquire up to 10.59 million equity shares in ABB Power Products and Systems India at Rs 851 per share.

Shares of ABB Power Products and Systems India were locked in the 5 per cent upper circuit for the second straight day, at Rs 787, on the BSE on Wednesday since its market debut on Monday.

Till 11:51 am, a combined 14,779 shares  have changed hands and there were pending buy orders for 74,627 shares on the NSE and BSE, data show. In comparison, the S&P BSE Sensex was down 3.6 per cent or 1,064 points at 28,405 level.

ABB Power Products and Systems India is the standalone legal entity of ABB’s Power Grids. The company had de-merged from ABB India with effect from December 1, 2019. ABB Power Products and Systems India allotted 1 equity share for every 5 equity share held in ABB India.

For the period between April and December 2019, the business had total revenue of Rs 3,231 crore with a profit before exceptional items and tax of Rs 261 crore and profit before tax (PBT) at Rs 221 crore.

Besides, ABB Switzerland and Hitachi have together launched an open offer to acquire up to 10.59 million equity shares in ABB Power Products and Systems India. The offer is at Rs 851 per share. The acceptance ratio would be 100 per cent as public shareholders hold 10.59 million shares or 25 per cent stake in the company.

In December 2018, Swiss power major ABB Group had said Japan-based Hitachi will buy an 80.1 per cent stake in its power grids arm in a deal that values its grid business at USD 11 billion (Rs 78,763 crore). The deal is expected to complete by the first half of 2020, subject to regulatory approvals and fulfillment of closing conditions, ABB Group said in a statement.