TVS Group company Wheels India on Friday said it will continue to hold management control. The announcement comes at a time when its foreign partner is planning to increase its stake through an open offer which may lead the foreign partner holding a majority stake.
Meanwhile, the company on Friday got the board’s approval to raise Rs 100 crore through a public issue. The company may dilute around 5 per cent through the issue.
Srivats Ram, managing director, Wheels India, said, the fund-raising is to meet fresh capital requirements and will also help the company meet the deadline of SEBI for listed companies to have at least 25 per cent equity held by non-promoters.
The approval is for the public issue of equity capital (including premium) up to Rs 100 crore.
“We want to improve our debt-equity ratio and bring working capital to the company for which we decided for public issue,” said Ram.
At present, the company’s debt is around Rs 400 crore.
On Titan Europe plc, which is presently a 35.91 per cent shareholder in Wheels India has informed the company by virtue of an international transaction involving the acquisition of Titan Europe plc by Titan International Inc it is required to make an open offer to the public shareholders of Wheels India, under the India Takeover Code.
On Thursday, Titan Europe PLC and Titan International Inc as ‘person acting in concert’, said it is planning to acquire 14.38 per cent. The acquisition will be through an open offer to acquire 1.42 million shares constituting 14.38 per cent of the fully-diluted voting equity share capital of Wheels India Ltd from public shareholders.
Once, the open offer concludes successfully, the shareholding of Titan Europe would go up to 50.29 per cent in the company while Indian promoters, including T V Sundaram Iyengar & Sons Ltd, Sundaram Finance Ltd and Southern Roadways Ltd will hold the rest.
Ram said, post Wheels India’s public issue current shareholding will be similar and fund raising via equity is to meet capital requirements and to meet the statutory requirements,” said Ram. The fund raising could be QIP, IPP or other modes, which yet to be decided, said Ram.
