Wheels India to raise Rs.100 crore

The Board of Directors of Wheels India Ltd. have approved the public issue of equity capital (including premium) up to Rs.100 crores, subject to the approval of the shareholders of the company. This fund raising would enable the company to meet its fresh capital requirements and also to meet the deadline of SEBI for listed companies to have at least 25% of equity held by non-promoters.

Titan Europe Plc, which currently has 35.91% stake in Wheels India has announced an open offer under the Indian Takeover Code due to an international transaction involving the acquisition of Titan Europe Plc by Titan International Inc.

Wheels India is a leading manufacturer of steel wheels for passenger cars, utility vehicles, trucks, buses, agricultural tractors and construction equipment. The company has manufacturing plants at Padi, Pune, Rampur, Bawal, Sriperumbudur and Pantnagar with a combined overall annual capacity of 13 million wheels. It has about 50% market share in the commercial vehicle segment, close to 45% market share in the passenger car segment and around 60% in the agricultural tractors segment in India.

The Wheels India Ltd. stock was trading at Rs.888.10, up by Rs.148 or 20%. The stock hit an intraday high of Rs.888.10 and low of Rs.769.90.

The total traded quantity was 83024 compared to 2 week average of 702.

Source : Equity Bulls

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