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Prolec-GE International S de R L de C V, a joint venture between General Electric Company and Xignux, would infuse Rs 150 crore in Chennai-based Indo Tech Transformers, LTD (Indo Tech). Prolec-GE is the promoter of Indo Tech and holds a 74.35 stake, according to the BSE.
The company received its board’s approval for a proposal of ‘subvention’ from Prolec-GE International. The subvention is a one-time, voluntary, non-repayable, financial grant of an amount equivalent to $ 25 million, and would help it stabilise the net worth, it said.
Prolec GE had acquired a majority stake in Indo Tech, which specialises in power and distribution transformers, in 2009. Indo Tech facilities were located in close proximity to two ports and an international airport, ideal for target export areas, expanding Prolec GE’s global growth opportunities, Prolec GE had stated then.
For the year ended March 2014, Indo Tech reported revenues of Rs 33.75 crore and a loss of Rs 0.03 crore.
Though the company’s performance during the nine-month period ended March 2014, witnessed rise in demand from customers and improved market conditions.
