APW President Systems is a mid size IT Infrastructure company manufacturing standard and customized enclosure systems.Other than IT,company's products are used in sectors like Telecom and Electronics.Company having three manufacturing facilities in India located at Pune,Bangalore and Puducherry.Company's main products includes Server Rack's ,Networking Racks,Industrial Cabinets,Street Side Enclosures..etc.Company also exporting its products to various countries includes USA ,UK ,Australia ,Middle East countries..etc. APW manufacturing these products in Standard size and Customized form.APW entered various technical and marketing alliances with various foreign companies like Avocent Corporation,United Technologies,Vette Corp...etc.Company's products have good prospects considering
Indias untapped rural market for IT infrastructure ,Power..etc.
In a landmark development which may change the entire fortune of the company ,recently French major Schneider Electric bought 75 % of APW Presidents systems from its Indian Promoters and through open offer. This deal happened @ Rs 195/- per share. Even if Schneider Electric made aggressive acquisitions in India in last few years - which includes part of the security solutions business of Zicom Electronics and Digilink business of Smartlink Networks - acquisition of APW is the only buyout of a listed company . In all other cases Schneider bought only the assets of listed companies and not the company in full.There may be even a chance of integration of these companies in future .In such a case , either a de-listing offer for APW or a merger of other companies with APW can be expected. Even if such an integration not happened , Digilink's requirements for enclosures may be sourced from APW , being both companies are owned by the same parent. The money power ,managerial expertise and large share of business of Schneider will surely benefit APW going forward.The old management including MD steps down and new nominees of Schneider appointed this week in APW.Company posted a loss in December qtr and back to black in latest March qtr. I think ,the loss posted in December was the effect of a balance sheet cleaning just before changing hands. Open offer by Schneider was @ Rs.195/- and and its share price moved from Rs.135/- to Rs.195/- on the news of Schneider's acquisition . Now it corrected to Rs.140- 145 level.Considering the strength of the MNC parent and its aggressive growth plans , APW President Systems may turn as a dark horse, provided that the parent company is not doing any foul play to de-list it at cheaper rate. Chances are very rare for such a play considering the reputation of Schneider. CMP is around Rs. 145/-