ABB India sells solar inverter biz; stock touches 52-week low

Engineering and automation major, ABB India, announced that its board has approved the proposal of selling its solar inverter business.

The solar inverter business falls under the company’s electrification products segment, which is nearly 24 per cent of the total revenue. Out of this, solar inverter business is approximately nine per cent of the total turnover of the company. The business segment has completed some major projects such as solar inverter to Indian Railways at 750 railway stations.

The management in a press release stated that the company’s board has approved the proposal to sell solar inverter business at the back of growing concern on slump sale basis to a wholly-owned Indian Subsidiary of Italian company-FIMER S.p.A viz, Marici Solar India for a value of Rs 100.6 crore and on such terms and conditions as contained in the Business Transfer Agreement (BTA) to be executed in the due course. The press note further added that the business transfer will take effect from April 2020.

The stock has corrected by nearly 20 per cent since January 2020. On Wednesday, the stock touched its new 52-week low of Rs 1,098.60 on BSE.