HBL Power Systems Ltd. announced on Wednesday that the proposal for the slump sale of two of its products has not been accepted by the Board.

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The company has informed the bourses that in a meeting held on June 28, 2023, HBL Power’s Board has advised the company to find an alternative route to restructure its two businesses of power electronics and integrated power supplies.

Both the Power Electronics (PE) as well as Integrated Power Supply (IPS) businesses are related closely and manufactured in the same factory unit at HBL Power, and combinedly contributed 5 percent to the total sales of the company in the financial year 2022-23.

However, the company’s board did not choose to go ahead with the proposal of a slump sale of the two businesses to the Hyderabad-based Moebius Power Electronics, where HBL is a shareholder as it did not find it to be attractive enough.

On Friday, the company clarified that the proposed slump sale of the two products shall not impact its Train Collision Avoidance System (TCAS) called ‘Kavach’, or any other signalling product, but will instead offer HBL Power’s management to put aside more time to businesses like Kavach.

HBL Power said on June 28, 2023, that the combined sales of the PE and IPS businesses have declined from Rs 107 crore witnessed in the financial year 2018-19 to Rs 67 crore in the last fiscal year 2023.

It was found in an assessment conducted by HBL Power’s management that this trend of declining sales of the two businesses could not be reversed.

Shares of HBL Power Systems are trading 2.2 percent lower at Rs 154.