Synopsis:
ADC India Communications hit 20% upper circuit post the company said that Amphenol will make an open offer to acquire up to 26% stake from the public shareholders of ADC India Communications at the price of ₹1,179.92 per share
The shares of this leading manufacturer and trader of Telecommunications & IT Networking products are in focus after it plans to acquire a 26% stake in the company at a consideration of Rs 141 crore.
With a market capitalization of Rs 659 per share, the shares of ADC India Communications Ltd are currently trading at Rs 1,432.65 per share, representing a decline of 37 percent from its 52-week high of Rs 2,280.35 per share. Over the past five years, the stock has delivered a robust return of 603 percent.
Amphenol Corporation (Acquirer) has made a move to acquire up to 26 percent (11,96,000 equity shares) of ADC India Communications Ltd from public shareholders, offering Rs 1,179.92 per share.
This comes on the ground of a global acquisition deal with CommScope. With this indirect transaction, Amphenol is set to take control of about 72 percent of ADC India’s voting share capital, which means they’ll need to launch a mandatory open offer in line with SEBI takeover regulations. The deal, which is valued at Rs 141.11 crore if fully accepted, represents a major change in ADC India’s ownership landscape.
Yesterday, the company announced that its promoter entities, CommScope Connectivity LLC and CommScope Technologies LLC, which currently hold a 72.02 percent stake in ADC India, will sell their Connectivity and Cable Solutions (CCS) business to Amphenol Corporation for a total consideration of $10.5 billion (approximately Rs 89,250 crore).
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Financial Highlights
ADC reported a consolidated revenue of Rs 187 crores in FY25, up 4.5 percent from Rs 179 crores in FY24. Coming to its profitability, it reported a net profit of Rs 24 crores in FY25, up 14.3 percent from Rs 21 crores in FY24.
The stock delivered a robust ROE and ROCE of 34.74 percent and 46.57 percent respectively, and is currently trading at a low P/E multiple of 26.93x as compared to its industry average of 43.89x.
ADC India Communications provides top-notch telecom and IT networking solutions, not just in India but around the globe. They specialize in a range of products, including copper and fiber connectivity, structured cabling, and data center and LAN solutions. Plus, they offer FTTX and in-building wireless systems. Their clientele includes telecom operators, enterprises, and infrastructure providers, all benefiting from their comprehensive voice, data, video, and wireless solutions.
Written by Satyajeet Mukherjee
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