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Wheels India gallops to record high as board approves public issue

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Capital Market Mumbai
Last Updated : Apr 24 2013 | 1:41 PM IST

The announcement was made after trading hours on Friday, 14 December 2012.

Meanwhile, the BSE Sensex was down 16.28 points or 0.08% to 19,300.97

On BSE, 1.02 lakh shares were traded in the counter as against average daily volume of 2,882 shares in the past one quarter.

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The stock hit a record high of Rs 967 in intraday day trade today, 17 December 2012. The stock hit a low of Rs 895.25 so far during the day. The stock had hit a 52-week low of Rs 233 on 19 December 2011.

The small-cap stock outperformed the market over the past one month till 14 December 2012, surging 24.79% compared with the Sensex's 3.75% rise. The scrip had also outperformed the market in past one quarter, advancing 25.79% as against Sensex's 4.62% gain.

The company has equity capital of Rs 9.87 crore. Face value per share is Rs 10.

Wheels India said its board of directors has approved the public issue of upto Rs 100 crore, subject to the approval of shareholders. In addition to meeting the fresh capital requirements of the company, the raising of the equity will also help the company to meet the deadline of Sebi for listed companies to have atleast 25% of equity held by non-promoters, the company said.

After market hours on Thursday, 13 December 2012, Wheels India's foreign promoter Titan Europe Plc and Titan International, Inc as the Person Acting in Concert made an open offer to public shareholders for acquisition of 14.19 lakh shares or 14.38% stake in the company at a price of Rs 725.38 per share.

Promoters owned 85.62% stake in Wheels India as at end 30 September 2012 of which 35.91% was held by foreign promoter Titan Europe Plc. The remaining 49.71% stake was held by TVS group through T.V. Sundram Iyengar & Sons, Sundaram Finance and Southern Roadways.

The open offer for shareholders was following Titan International's acquisition of Titan Europe Plc.

Wheels India's net profit fell 21.7% to Rs 8.60 crore on 1.1% fall in net sales to Rs 447.96 crore in Q2 September 2012 over Q2 September 2011.

Wheels India is engaged in manufacturing of steel wheels for commercial vehicles, passenger cars, utility vehicles, agricultural tractors and construction equipment.

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First Published: Dec 17 2012 | 11:32 PM IST

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