Banco allots 4.5% shares to Japanese company

The stake is valued at around Rs 10 crore.

Vadodara-based auto parts makers, Banco Products, has allotted around 4.5 per cent shares to Japan Metal Gasket.

The stake is said to be valued at around Rs 10 crore. The company manufactures gaskets and radiators that has applications in automobiles, oil engines, compressors and locomotives.

Japan Metal Gasket has a technical collaboration with Banco for manufacturing gaskets. An official of Banco confirmed that the company had allotted 6,78,208 shares with a face value of Rs 10 at Rs 150 per share (33,91,040 shares of Rs 2 each at a price of Rs 30 per share after sub-division) to Japan Metal Gasket last week on a preferential basis.

"We have allotted shares to Japan Metal Gasket to strengthen relations with the company. However, as of now, we cannot comment on whether we will be allotting more shares in the near future," said a senior official of Banco Products.

Around 35 per cent of the company's sales comes from the European markets. Both products are rolled out of its manufacturing locations based at Vadodara.

The company has also set up a 100 per cent export-oriented unit at Vadodara.

For the automotive sector, the company manufactures and exports a range of automotive gaskets for diesel engines, agriculture diesel engines, and cylinder head gaskets.

Under the radiators vertical, the company manufactures a range of high-performance radiators, auto radiators, car radiators, industrial radiators, etc.