Wheels India gets nod to raise Rs 400 crore

CHENNAI: The Chennai-based auto component major Wheels India has got the approval from its Board to raise Rs 400 crore, the company said on Friday.

At the Board of Directors of Wheels India meeting held on Friday, it has considered and approved the raising of funds by way of issuance of equity shares of face value Rs and/or equity linked instruments, including convertible preference shares, non-convertible debt instruments along with warrants, fully convertible debentures, partly convertible debentures, and/or any other securities convertible into equity shares or any combination of Securities, in one or more tranches, in the course of domestic offerings, in one or more foreign markets and/or domestic markets, through public and/or private offerings and/or rights offering and/or by way of preferential allotment (including Qualified Institutions Placement) or any combination thereof for an aggregate amount of up to Rs 400 crore.

For giving effect to the proposed issuance of Securities, the Board has authorised the Fundraise Committee of the Board to inter-alia take necessary steps including deciding the timing, price, terms and conditions of the issuance of the Securities.

Wheels India registered a net profit of Rs 139 crore last year on revenues of Rs 5,124 crore.

Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger vehicles and construction equipment; air suspension systems for trucks and buses, and industrial components for the construction and windmill industry. Its manufacturing plants are located in Tamil Nadu, Maharashtra, Uttar Pradesh, Uttarakhand and Andhra Pradesh.