Steel Strips Wheels rises after promoters reduce pledged shares

Steel Strips Wheels gained 1.47% to Rs 1,092.10 after the company's promoters partly released pledged shares.

On 12 July 2021, Steel Strips Wheels said it released 150,000 shares from the pledge and subsequently the number of shares pledged has been reduced to 34,18,347, which is 21.9% of total paid up capital of the company and 34.89% of total promoter shareholding.

Promoters pledge shares to raise money (either for personal purpose or for the company) against their holding in their companies from various financial institutions, wherein the promoters' shares act as collateral.

The promoters along with the persons acting in concert hold 97,97,402 equity shares in Steel Strips Wheels, which is 62.77% of the total paid up capital of the company. Out of the total holding, 35,68,347 equity shares were pledged, which is 22.86% of total paid up capital of the company and 36.42% of total promoter shareholding.

SSWL is engaged in the manufacturing of steel wheel rims catering to different segments of automobile industry. The firm operates in automotive wheels segment. Its geographical segments include India and overseas. The company's net profit increased 14.7% to Rs 51.08 crore in Q1 FY22 as against Rs 44.55 crore in Q4 FY21.

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