Low Priced Scrip – IMP Powers by Dalal Street
The economic slowdown, which finds its origin to financial meltdown and has led to the demand destruction, has its silver lining. There is general consensus building in the country that to stimulate the demand, the government needs to speed up its spending on infrastructure, in general and power sector, in particular, which plays a pivotal role in demand acceleration. IMP Powers (IMPP), which is into manufacturing of entire range of power and distribution transformers, electrical meters and testing equipments, is in a right position to exploit this opportunity.
IMPP has manufacturing facility at Silvassa and Mumbai. It manufactures transformers ranging from 10MVA to 150MVA in 220 KV class at Silvassa plant with installed capacity of 3600MVA. For meters it has installed capacity of 214400 units. Recently the company has taken an expansion plant of Rs 30 crore after which installed capacity of transformers will increase to 6000MVA and meters to 314400 units by the end of FY09. (The company has June as year ending). It has already secured funding for this expansion plan. Motilal Oswal Venture Capital Advisors Private Limited have invested Rs 19 crore and the balance is financed by promoters of the company and Brescon Corporate Advisors by subscribing to warrants at a rate of Rs 164. Apart from increasing the capacity the company plans to enter higher range of transformers up to 400 KV class. This will help the company to target new sets of clients. It earns 96 per cent of its revenue from the transformer business and the rest from meters. IMPP also exports its product to various countries and 30 per cent of the total revenue is earned from this market.
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