Saturday, January 8, 2011

APW President.....My old call.....

Schneider Buys 55% In APW President For Rs 62Cr ....
The French energy giant continues buying spree; Will make an open offer for 20% APW stake.

Schneider Electric India, the subsidiary of French energy major Schneider Electric Industries SAS, is continuing its inorganic expansion in India through mid-and-small cap buyouts. In the latest deal, Schneider Electric is acquiring a 55% promoters stake in APW President Systems Ltd for Rs 62.2 crore. The deal, which will trigger an open offer for another 20% stake, will see Schneider taking over the company.
APW designs and manufactures standard and customized racks and enclosure, particularly for IT and telecom firms.
Schneider Electric is taking the promoters' stake for Rs 195 per share, which is a 30% premium to Thursday's closing price of Rs 150.
The share price of APW hit the upper circuit today to reach Rs 157.5, up by 5% giving it a market capitalisation of Rs 94.5 crore today. APW has revenues of Rs 108 crore for 12 month period ending Sep '10 and has around 380 employees. APW has manufacturing facilities in Pune and Bangalore with sales and market offices across the country.
This is the fourth deal by Schneider Electric in last 19 months. It acquired Bangalore-based Conzerv Systems, an energy management firm with revenues of Rs 70 crore in June 2009. It followed one month later with acquisition of Bangalore-based Meher Capacitors, which manufactures power factor correction capacitors and offers comprehensive products and solutions.
Schneider last year acquired two electronic security system business units of Mumbai-based Zicom Electronic Security Systems for Rs 225 crore. The units, Building Solutions Group and Special Projects Group, focus on government and institutional sales with a turnover of Rs 180 crore.
Schneider Electric entered India in 1963 through a JV with Tata Group and established its subsidiary Schneider Electric India Pvt Ltd in 1995. In 2000, it acquired Chennai based S&S Switchgear and Nashik based Crompton Greaves Low Voltage division. Schneider Electric India also acquired global firm American Power Conversion (APC) in critical power and cooling solutions domain and security solutions provider Pelco in 2007. Schneider along with Alstom also acquired Areva, which included the India unit Areva T&D.
Schneider Electric offers integrated solutions across multiple market segments including energy and infrastructure, industrial processes, building automation and data centres and networks as well as residential applications. It achieved sales of more than 15.8 billion euros ($20.7 billion) in 2009.
My Comments:
Well friends,
Once again my call  of APW President has come good.I recomended it in 2009.There must be many who didn't believe the call and must have given a pass on it but today when I read this news in VC Circle I can't resist myself to paste it here and show that after 1 and a half year , a MNC French Giant,Schneider is taking over all promoters stake of 55% for Rs 195, permimum of 30% on cmp.
This once again shows that I can see faroff what is going to happen or what can be the use of the product of the Co in future which can result in exponential growth or a hostile takeover.
Ofcource I am not boasting of anything but trying to write some thing which my readers needs to look out for.


  1. It Worked For Us - another story of india growth

  2. I bought APW based on your call. Thank you very much.

  3. Hi Rajeev

    I have good quantity of marg but its stagnant since last yr . Any hope for this stock?


  4. ravi,
    i donno what u r talking.The 52 week low for Marg is 103 and high is 243.How can u say Marg remained stagnant?
    And I remember I gave the call for Marg around at 243, it has given a fabulous return of 500% in one and a half year.....
    Check it.....Marg 52 week high(last one year) is 243 and low is 103 , so it appreciated by more then 100% in last 1 year......

  5. Hi Rajeev,

    Nutek is down to 16-17 level..I again bought at lower level but still want your view as you are the best when it comes to time any co.


  6. OM,
    Nutek looks excllent LT pick.Though the eq has gone up from 17 cr to 37 cr due to conversion of GDR, the margin has improved in Sep qr.Have a look yourself.
    One can add more now and on declines which looks very limited now.....don't think one can get it below 10 or 12.....but this is market and anything can happen....

  7. Dear Sir,

    Do you still maintain your positive view on Madhucon Projects? Am holding a few quantity of it. I know its a good company. Just wanted to know you still feel good about it.

    Thank you so much in advance.