Nelco jumps after board's nod for business restructuring

Nelco surged 4.87% to Rs 42 at 9:51 IST on BSE after the company said its board has approved the restructuring of the company's Industrial Security & Surveillance Solutions business.

The announcement was made after market hours on Thursday, 3 April 2014.

Meanwhile, the S&P BSE Sensex was down 93.36 points or 0.41% at 22,415.71.

On BSE, so far 89,000 shares were traded in the counter as against average daily volume of 20,000 shares in the past two weeks.

The stock hit a high of Rs 43.25 and a low of Rs 41.70 so far during the day.

Nelco's board of directors at its meeting held on Thursday, 3 April 2014, inter alia, has approved the restructuring of the company's Industrial Security & Surveillance Solutions business (ISSS business), by restricting operations and reducing expenditure with a view to minimize losses. This will be subject to necessary approvals/consents/permissions, Nelco said.

However, the company will continue to focus on building its position in the Network Systems business, Nelco said.

Nelco reported a consolidated net loss of Rs 2.85 crore in Q1 December 2013, lower than net loss of Rs 6.65 crore in Q1 December 2012. Net sales rose 3.1% to Rs 34.89 crore in Q1 December 2013 over Q1 December 2012.

Nelco offers solutions in the areas of Integrated Security & Surveillance, VSAT connectivity (Tatanet VSAT), Managed Services, Satcom Projects and Meteorological Solutions. The company offers a range of innovative and customized solutions for businesses and government institutions under one roof.

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