Kg Khosla Compressors

Price on 17/04/98: Rs 24.75

Price on 10/04/98: Rs 19.90

The KG Khosla Compressors (KGKCL) scrip moved up 24.30 per cent on the news that Kirloskar Pneumatic (KPL) is increasing its stake in the company. KPL currently holds 8.71 per cent in the company. It has received permission to invest up to Rs 6 crore in KGKCL's equity which stands at Rs 10.25 crore. Any further acquisition by KPL will trigger the takeover code and the company will have to make an open offer to acquire another 20 per cent as per SEBI regulations.

KGKCL makes high pressure compressors, air and gas compressors, refrigeration compressors and hydraulic pressure vacuum pumps. KPL has been interested in KGKCL as it suits its own product profile. KGKCL was a loss making company till 1995-96. However, it recovered in 1996-97 with a turnover of Rs 46.01 crore against Rs 38.05 crore in 1995-96. Its net profit was Rs 3.53 crore against a loss of Rs 0.47 crore.