- 09 Apr 2025
- ICICIdirect Research
SYMPHONY'S BOARD TO CONSIDER DIVESTING ITS SHAREHOLDING / MONETIZING ITS STAKE ON 12TH APRIL
SYMPHONY - 1157 Change: -26.10 (-2.21 %)News: Symphony's board to consider divesting its shareholding / monetizing its stake on 12th April in couple of its subsidiaries including a) Symphony AU Pty Limited, Australia, b) IMPCO S de R.I. de C.V., Mexico (IMPCO). Besides, board to consider and approve the sale of technology and Intellectual Property Rights (IPRs) by Guangdong Symphony Keruilai Air Coolers Co. Ltd., China (GSK) to IMPCO at ~ USD 5.1 mn (equivalent to approximately ₹ 43.5 cr) and authorise GSK to use sales proceeds amount (net of costs, taxes etc.) to repay loan to Symphony Limited, India.
View: Australian subsidiary generated revenue of Rs 185 cr in FY24, negative EBITDA of Rs 23 cr and negative PAT of Rs 25 cr. Mexican subsidiary generated revenue of Rs 178 cr in FY24, EBITDA of Rs 27 cr and PAT of Rs 11 cr. Overall, we believe it is the step in right direction as Symphony's Australian business has been struggling to pick up despite company launching new products while Mexican subsidiary doing relatively better. Divesting stake in these subsidiaries shall free up capital and shall be positive for the company once finalised.
Impact: Neutral