Tata Capital has acquired 3.88 per cent stake in Steel Strip Wheels after conversion of bonds into equity shares, raising the total stake of the Tata Group in the company to 13.50 per cent.
Steel Strips Wheels has alloted 5.07 lakh shares, representing 3.88 per cent stake in the company, at a price of Rs197 a piece to Tata Capital in lieu of optionally convertible bonds, the company said in filing with the Bombay Stock Exchange.
Another Tata Group firm Tata Steel, through its wholly-owned subsidiary Kalimati Investment Company, holds another 10 per cent stake in the company.
The total stake of Tata Group in SSWL has thus increased to 13.5 per cent of the total enhanced paid up capital of the company.
Steel Strips Wheels was set up for manufacture of wheel rims for cars and jeeps and is located at village Somalheri and Lehri in district Patiala.
SSWL has put in a good performance for the financial year ended March 2000 with a 42 per cent growth in sales at Rs48.79 crore and a 136 per cent growth in net profit at Rs4.92 crore.
The company's main clients include Maruti Udyog, Mahindra & Mahindra, Honda, Telco and Bajaj Tempo.
During the financial year FY2000, SSWL reduced its operating costs, raising its operating profit by 74 per cent and gross revenue by 42 per cent. The operating margin has improved to 26.2 per cent from the previous 21.3 per cent.