Bajaj Electrical, on Sunday announced that the company has bought the remaining share of the Starlite Lighting Ltd. from its promoters, and has officially acquired the Starlite Lighting Ltd. firm. The deal closed around for a cash consideration of Rs 60 Crore. Starlite Lighting Ltd. was commenced by the Bharati brothers in year 200 with their deep experience of almost 3 decades of experience in the lighting business. Starlite involved Bajaj Electricals as a strategic partner in the business, in 2007. Bajaj Electricals having a diversified portfolio of products and an income of over Rs 3,100 Cr has been a great help to starlite with its huge support, Inspiration, stability, and growth to Starlite. Bajaj Electricals Limited has helped Starlite to deal in much bigger league, and has helped them to position themselves among the leading players of the Lighting Industry.
A cash consideration of Rs 15 crore will be paid to relinquishment and transfer of the joint control and management rights in SLL, as Bajaj Electricals have executed a control transfer agreement with its Starlite owners and promoters- Ravindra Bharati and Arvind Bharati. Bajaj Electricals have confirmed that they will pay an aggregate control premium of Rs 14.80 crore, plus GST as applicable, to the Outgoing Promoters, subject to the terms and conditions of the said CTA. The premium in favor of the company would be in consideration of the said relinquishment and transfer of joint Control and Management Rights of SLL by Outgoing Promoters. A share of worth Rs 45 crore would also be subscribed from the promoters.
Bajaj Electricals has already entered into a share subscription agreement for buying 45 lakh shares of equity of SLL at a low cost of Rs 10 per share. SLL has now become a subsidiary of the Bajaj Electricals Ltd. company. The Board of directors of the Bajaj Electricals also decided in a meeting on Friday, that it has granted approval of the deal to commence the potential merger of SLL into Bajaj Electricals. In the Financial year of 2019-2020, the Starlite Lighting has registered a turnover of Rs 172.90 crore. Starlite has 4 manufacturing plants located in Nashik, which is just about 180km from Mumbai. There are about 290 workers with 250 of them as production workers and 40 comprising of the executive level. Bajaj Electricals has a vision of utilizing the organizations with young and dynamic minds, and with a commitment and high degree of infinity to achieves company objectives.
There would be some major changes brought inside the company with an understanding to develop the strategies of the SLL for a better company. Bajaj Electrical might get a good help from SLL in the fields of CFL as the Starlite Lighting has already set up their benchmark in the CFL technology and CFL manufacturing, and were considered as the largest facilities who manufacture CFL in India. The share prices of Starlite after acquisition by Bajaj Electricals went up by 4.41 percent on 3rd May, compared to last week. Per share price of SLL is about Rs 2.37 today and is expected to rise considerably in the forecasted period.
