Price on 05/09/97: Rs 65
The stock gained 4 per cent over the last weeks close. The appreciation is mainly due to the foreign collaborator, FAG Kugelfischer Georg Schaefer AG, Germany increasing its stake from 40 per cent to 51 per cent through a preferential allotment. The premium is yet to be decided. The current equity capital of the company is Rs 13.57 crore. The reason for picking up the additional stake at this juncture may be due to the low market price during the last six months. The bearing industry, in the past one year, has seen a reversal in fortunes with a constant downward revision in the import duty on finished bearings from 110 per cent plus Rs 280 per piece in 1994 to 25 per cent plus Rs 120 per kg in 1996. However, imports posed lesser problems because of the irregular supply of bearings worldwide.