TVS Electronics rose 19.99% to Rs 50.20 on announcement of selling of its contract manufacturing services business in Karnataka to a unit of Finland's Incap Corp.

On BSE, 1.43 lakh shares were traded on the counter.

The share price declined from Rs 43.40 on 21 May 2007 to Rs 40.95 on 28 May 2007. It rose over the next two trading sessions to settle at Rs 41.85 on 30 May 2007.

TVS Electronics said during trading hours on Thursday, 31 May 2007, that it sold its contract manufacturing services (CMS) business in Karnataka for Rs 41.12 crore to a unit of Finland's Incap Corp.

On 10 April 2007, the company's shareholders had given authority to the board of directors for the sale of the company’s contract manufacturing services (CMS) business at Tumkur Karnataka to Incap Corporation, Finland, for a consideration not less than its net book value.

The company had also said that it would also be spinning off its customer support (CS) business into a wholly owned subsidiary.

The company intends to focus on its products and solutions (P&S) business, which consists of printers, and keyboard among others.

The CS business of the company consisting of contract manufacturing for OEMs, traded products like set top box and field support business had generated revenue of Rs. 81 crore in FY 2006 (year ended 31 March 2006). The CMS business had registered a turnover of Rs 65 crore in FY 2006.

The Products and Solutions (P&S) business of the company excluding payment system products had registered 11% growth with revenue of Rs 178 crore in FY 2006 compared to Rs 161 crore during the corresponding period in previous year. The company had market share an average 41% in dot matrix printers in FY 2006.

TVS Electronics' net profit rose 304.1% to Rs 1.74 crore in Q3 December 2006 compared to Rs 0.43 crore in Q3 December 2005. Sales soared 4.35% to Rs 75.33 crore in Q3 December 2006 as against Rs 72.19 crore in Q3 December 2005.