K Ajith Kumar Rai, Chairman & Managing Director address the call.

Highlights of the call:

Phoenix Lamps is the subsidiary of Suprajit Engineering wherein Suprajit currently owns 61.93% of Phoenix equity shareholding. The merger ratio has been set at 4 shares of (Re.1/- each) Suprajit for every 5 shares of (Rs. 10/- each) Phoenix in line with SEBI regulation.

Post merger, Phoenix Lamps will operate as a separate division of Suprajit Engineering and will continue to market itself under the brand of 'Phoenix'.

Phoneix has embarked on mordenisation plan. It has received first machine which has been put to use and commissioned. Second machine have come to the Bombay port. Confident that will install and commission it by the end of FY.

The company has finished first phase of restructuring of foreign subsidiaries. Phoenix Lamps now holds 100% stake in Trifa and Luxlite, its subsidiaries

Won't talk on financial numbers of last quarter but both the companies have performed satisfactorily.

Suprajit said the consolidated sales of combined entity for the current year are expected to be in excess of Rs 1,100 crore with good financial ratios.

This merger will bring significant synergies together.

The combined entity will have a strong balance sheet, along with an excellent OEM customer base and in-depth aftermarket reach.

This will also enhance cost efficiencies at various levels, better management bandwidth and reduced compliance requirements. This will be a win-win for both companies.

The company spent around Rs 155 crore for the purchase of 61.93% stake of Phoenix.

Dilution for Suprajit in this deal is 6%.

Both Suprajit and Pheonix are confident of the future.

FY 2015 was a year of de-growth at phoenix due to historic reasons. Those problems are now behind the company. Now growth will take place. As and when this merger completes, Suprajit as a consolidated entity with phoenix will grow at around 5-10%.

In after market (AM) Suprajit is strong in South and phoenix is strong in North and in East both are in between. So the merger will help both the companies to grow its AM business.

The deal will be cost efficient for both the companies.

Most of the Phoenix stakeholders were not happy with the merger and thought that they were shortchanged.

Nearly 65-70% business of Phoenix is after market. Entire international market bossiness is AM. Only in India the business is in OEM space.

Phoenix has a strong market share in Europe.

Capacity of Phoenix Lamps is about 82 million lamps and it produced 50-55 millions in FY 2015. So there is decent prospect to improve productivity without capex. But now the capex is being done to improve the quality.