Sirmour Sudburg

This is part of the rehabilitation package dictated by Board for Industrial and Financial Reconstruction. Under the revival package, the company will bring in Rs 16.06 crore out of the prescribed amount of Rs 21 crore.

The foreign company is said to be picking 51 per cent equity stake at Rs 45 per share which is at around 28 per cent premium to its current market price of Rs 35. This will be through a preferential offer by which the companys equity would increase to 6.93 crore from 2.43 crore.

After the offer, the company would be converted into a joint venture named as Sachs Sirmour. With this inflow of fresh capital, the company would be increasing its capacity to five million shock absorbers for two wheelers from the present capacity of 2.4 million per annum. The company also wants to set up new facilities to manufacture five million shock absorbers for four wheelers.