Maharashtra Glass

The foreign partner is increasing its stake from 26 per cent to 51 per cent through a preferential issue of 40,88,100 shares at a price of around Rs 25-26 per share based on the Sebi formula. This issue would bring in around Rs 10 crore and will relieve the company from the working capital problems at the right time.

The company recently started commercial production of the Rs 38-crore plant to manufacture laminated safety automotive wind shields with technology coming from Saint Gobain.

In 1995-96, the company hived off its oil division to concentrate on its core products, auto glass. This spin off resulted in a net loss of Rs 1.79 crore to the company. As a result, the company reported a loss of Rs 12 lakh at the net level.

The profit before tax stood at Rs 1.66 crore. The company has established its brand name Atultuf in the OEM auto segments.

However, a leading broker feels the company's order book position is not good enough to fully utilise the capacities. He expects the current year's performance to be quite poor and says it may continue doing so in the near future until demand from the auto industry picks up.