Steel Strips Wheels jumped 5.09% to Rs 343 at 10:49 IST on BSE after the company said that Kalink Co., Ltd. has agreed to invest an amount equivalent to $2 million by subscribing equity shares in the company.
The announcement was made during trading hours today, 21 September 2015.
Meanwhile, the BSE Sensex was down 74.32 points, or 0.29%, to 26,144.07
On BSE, so far 6,404 shares were traded in the counter, compared with an average volume of 8,551 shares in the past one quarter.
The stock hit a high of Rs 350 and a low of Rs 329 so far during the day. The stock hit a 52-week high of Rs 395.95 on 19 January 2015. The stock hit a 52-week low of Rs 254.50 on 27 March 2015.
The stock had underperformed the market over the past one month till 18 September 2015, falling 7.17% compared with 5.09% fall in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 20.58% as against Sensex's 3.31% decline.
The small-cap company has an equity capital of Rs 15.26 crore. Face value per share is Rs 10.
Steel Strips Wheels said that Kalink Co. has agreed to invest an amount equivalent to $2 million by subscribing equity shares in the company as per applicable Acts, rules and regulations and as per the terms and conditions as may be mutually agreed between both the parties.
Kalink Co., Ltd. is a South Korea-based corporation and is organized and existing under the laws of South Korea. It is a leading alloy wheel manufacturer and is having manufacturing facilities at Korea and China with a total manufacturing capacity of 4.5 million wheel rims per annum and is supplying to major original equipment manufacturer (OEM) namely Volkswagen, Nissan and Chrysler etc.
Meanwhile, Steel Strips Wheels said in a separate announcement that keeping in view the increased demand of alloy wheel rims, the company has decided to set up a most modern alloy wheel manufacturing facility at Mehsana, Gujarat for an initial capacity of 1.5 million alloy wheel rims per annum. For this purpose, the company has entered into an agreement with Kalink Co., Ltd., Steel Strips Wheels said.
Steel Strips Wheels' net profit rose 95% to Rs 12.15 crore on 5.9% rise in net sales to Rs 292.54 crore in Q1 June 2015 over Q1 June 2014.
Steel Strips Wheels designs and manufactures automotive steel wheels since 1991 and is among the leading supplier to Indian and global automobile manufacturers. The company's product range comprises steel wheels for two and three wheelers, passenger cars, multi utility vehicles, tractors, trucks and OTR vehicles.
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