Wheels India to raise Rs 100 crore
Bangalore, Dec 15, 2012, DHNS: 22:08 IST
Wheels India, a TVS Group company that manufactures wheels for vehicles, has decide to issue equity shares to the public to comply with Sebi guidelines that mandate listed companies to have at least 25 per cent holding by non-promoters by June 2013.
The issue size, estimated at Rs 100 crore inclusive of premium, is also aimed at meeting its capital requirements. The decision was taken by the company’s Board of Directors on Friday, according to a regulatory filing made by the company with the Bombay Stock Exchange (BSE). The public issue is subject to shareholders’ approval.
Currently, the promoters comprising group companies Southern Roadways, Sundaram Finance and TVS Iyengar and Sons held 49.69 per cent while technical and financial partner Titan Europe Plc held 35.91 per cent as on September 30, 2012.
It is pertinent here that pursuant to Titan Europe Plc’s acquisition by parent company Titan International, the two entities made an open offer to buy 14.38 per cent stake from public shareholders at Rs 725.38 per share on December 13, 2012.
The offer was in compliance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. If the offer were to conclude fully, the overseas promoters’ shareholding will be at 50.29 per cent, in other words, majority stake.
The public shareholding comprises Reliance Mutual Fund that held 3.83 per cent as on September 30, 2012. The total paid up equity share capital of Wheels India was Rs 987 lakhs consisting of 98.69 lakh shares of face value Rs 10.
Wheels India share hit a 52-week high of Rs 888.10 on Friday on the BSE and closed at the same price, a rise of 20 per cent over its previous close.
Wheels India posted net profit of Rs 8.60 crore during the quarter ending September 30, 2012, down from Rs 10.98 crore during the corresponding period last year.