The Hindu Business Line : Asian Electronics stock gains on US approval

THE stock price of Asian Electronics Ltd (AEL) gained almost 10 per cent on Wednesday's trading after the company received underwriter liability approval from the US for its energy efficient lighting system.

The stock price of the company gained 9.59 per cent at Rs 60 on the BSE with volume of 2.58 lakh shares.

AEL manufacturers and exports energy-efficient tube lights and other equipment.

Mr Suresh Shah, Chairman and Managing Director, AEL, said ``we have received the underwriter liability approval in the US and now we can sell our products there.'' Underwriter liability is similar to ISI marking system indicating good quality for products.

Mr Shah said the company has already gone through the pre-marketing exercise for the various products in the US and with this approval, it expects to receive orders. The products manufactured by the company help in reducing electricity consumption through Internet.

Earlier, the company had said that it has got letter of intent of around $40 million (about Rs 176 crore) for supply of energy efficient tube lights from the US-based corporation under the name of Westinghouse. The company is also providing energy efficient tube lights at retail level as well as to distributing companies.

Mr Shah also said that the company has received orders of Rs 8 crore (combined) from Indore and Ujjain Municipal Corporation for the energy efficient lighting system. The company is also eyeing Pune Municipal Corporation's Rs 15-crore order for the system.

According to a fund manager of a private sector mutual fund, ``AEL has huge growth potential in the next few years. The India cost advantage in the international market will offer tremendous growth through exports to development markets.''