Steel Strips in talks to sell up to 7.5% stake
Wheel rims maker Steel Strips Wheels is in talks with a strategic investor to sell 6.5%-7.5% and the deal is likely to close by January-end, a top official told television channel ET NOW.
January 03, 2011 / 14:28 IST
Wheel rims maker Steel Strips Wheels is in talks with a strategic investor to sell 6.5%-7.5% and the deal is likely to close by January-end, a top official told television channel ET NOW.
"At the moment we are discussing with a large strategic investor and those discussions are happening as we talk now and we should be hearing something by the end of this month," Managing Director Dheeraj Garg told the channel."In the world, there are not many strategic wheel manufacturers. So, I guess, we have a few players whom we are talking to."The discussions are now at the pricing level and other related details, Garg said, adding he expected to sell the stake at more than Rs 595 a share.At 1:17 p.m., shares of the company were at Rs 344.2, up 2.12% in a firm Mumbai market.Over the last two months, the company had raised funds through stake sale to two global majors.Last month, it had raised USD 5 million by selling 377,000 shares to South Korea's GS Global Corp and in November, Rs 44.2 crore by selling 5.9% to Japan's Sumitomo Metal.Chandigarh-based Steel Strips, which makes wheel rims for auto makers, will use the funds to expand capacity at its Jamshedpur plant in Jharkhand.It also exports products to Brazil, Argentina, the UK, Germany and Thailand. Its product range comprises wheels for passenger cars, multi-utility vehicles, tractors, trucks and two-wheelers.The firm expects to sell about 1 million wheels to Tata Motors, the country's largest commercial vehicle maker, in FY12, helping it add about Rs 350 crore to its revenues, Garg said."This is going to be a gamechanger for our company's topline next year," he said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
