Elpro International zooms 20% on PNB MetLife stake sale plan

The stock surged 20% to Rs 49.45 on the BSE after the company said it will offload 1.25% of its equity stake in PNB MetLife Insurance Company, which may fetch it about Rs 1,250 million.

Shares of Elpro International have surged 20% to Rs 49.45 per share on the BSE in intra-day trade after the company said it will offload 1.25% of its equity stake in PNB MetLife Insurance Company (MetLife), which may fetch it about Rs 1,250 million.

"For effective treasury management and cash flow requirement for the business of the company, company is in discussion with one potential buyer for sale of part of its investment to the tune of approximately 1.25% of the paid up equity of MetLife," Elpro International said in a regulatory filing.

The board of directors accorded for sale of part of investment in MetLife at a price to be negotiated with the potential buyer, the aforesaid transaction could fetch Company a sum of Rs 1,250 million approximately, Elpro International said.

Elpro International holds strategic investment to the tune of 12.75% equity in PNB MetLife, which is engaged in the business of life insurance. The company said investment were made from year 2003 onwards and as on date a sum of Rs 2,686 million has been invested in MetLife.

Elpro International is engaged in manufacturing of electrical machinery and equipment. It is also into construction of residential and commercial buildings.

The stock quoting under ‘X’ group category on BSE, in which companies specific characteristics such as low to moderate market capitalisation, lower contribution to overall trading turnover are traded.

At 11:45 am; the stock was trading 19% higher at Rs 49.30 on the BSE, as compared to 0.5% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than six-fold with 101,000 shares changed hands against an average 15,000 shares were traded daily in past two weeks on the BSE.