Deutsche Bank has acquired 4.76% stake, which will be in post issue, in the consumer electronics company BPL Ltd. The shares have been allotted through preferential issue of securities. The board of BPL has also approved a qualified institutional placement. The 4.76% stake, if calculated on the basis of market price of Rs 32, amounts to Rs 7.76 crore ($1.9 million). After the announcement the share price fell by more than 8%, reaching their 52-week low of Rs 31.
Deutsche Bank is part of BPL’s restructuring process and its picking up the stake is part of “vote of confidence”. Last month Japan’s Sanyo Electric Co pulled out of its loss-making joint venture with BPL in India producing cathode-ray tube televisions.
The funds raised will be primarily used for working capital requirements of BPL Healthcare Management Solutions. BPL has been increasing its focus on healthcare segment. It has tied up with various companies to expand its product range and services. It has tied up with German company Corscience GmbH for production of bi-phasic defibrillator, BPL-DEFI-ART, and wearable ECG monitor, CorBELT. BPL plans to manufacture these in its Palakkad facility and market them with a license. BPL has tied up with 17 companies worldwide to bring out innovative and affordable devices.
BPL is also implementing Ramagundam Thermal Power Project, a 600MW plant. It is also looking at more opportunities in this sector.