Synopsis:
Focus Lighting & Fixtures jumped 5% on reports suggesting that Panasonic is eyeing to acquire the entire 55% stake of the company’s promoters.
With a market capitalization of Rs 684 crore, the shares of Focus Lighting & Fixtures Ltd are currently trading at Rs 101.73 per share, down by 29 percent from its 52-week high of Rs 144 per share. In the last one year, the stock has corrected by 22.53 percent.
According to sources, Panasonic is currently in advanced talks to take over a controlling interest in Focus Lighting and Fixtures, a publicly traded B2B commercial lighting company.
This deal would involve purchasing the entire 55 percent stake held by the promoters of the company, which would then trigger a mandatory open offer for an additional 26 percent from public shareholders.
The total value of the deal could be around Rs 526 crore, based on current market valuations. Although due diligence has raised a few concerns, negotiations are still in progress, and Panasonic has yet to make any official announcement.
If this deal goes through, it would be Panasonic’s first significant acquisition in the electrical sector in India since 2007, when it bought Anchor Electricals. This acquisition would provide Panasonic with a strategic foothold in India’s rapidly growing and fragmented B2B lighting market.
Focus Lighting has major clients like Reliance Retail and DLF, and this deal would enable Panasonic to strengthen its portfolio and enhance its presence in the commercial lighting and fixtures space.
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Financial Highlights
The company reported a revenue of Rs 183 crore in FY25, down by 18 percent from its FY24 revenue of Rs 224 crore. Coming to its profitability, the company reported a net profit decline of 61 percent to Rs 15 crore in FY25 from Rs 39 crore in FY24.
The stock delivered a ROE and ROCE of 11.28 percent and 14.03 percent respectively, and is currently trading at a P/E of 45.13x as compared to its industry average of 35.85x.
Focus Lighting and Fixtures Limited, located in Mumbai and established in 2005, specializes in manufacturing and trading LED lighting products and solutions throughout India.
The company operates in two main areas: Own Manufactured and Trading. They offer a diverse array of products, including recessed spotlights, downlights, surface-mounted and suspended fixtures, wall washers, and track-mounted spotlights. These products are marketed under popular brand names like Plus Light Tech, TRIX, and Lumens & Beyond.
Written by Satyajeet Mukherjee
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