Wheels India Ltd, a leading manufacturer of wheels and automotive components, has revised the issue price of its proposed preferential share issue to the promoter group to ₹1,461 a share from ₹1,418 per shre, while reducing the total number of shares to 12.32 lakh.
The revision follows observations raised by the National Stock Exchange of India (NSE) on the valuation of the company’s equity shares.
Issue size remains at ₹180 crore
The company plans to raise ₹180 crore through the preferential issue.
The Board had on August 19 approved the issue and allotment of 12.69 lakh equity shares of face value ₹10 each at ₹1,418 a share. Following the NSE’s observations, the company has revised the issue price to ₹1,461 a share.
NSE raises valuation observations
Wheels India had applied to the NSE for in-principle approval of the proposed preferential issue.
The stock exchange subsequently raised certain observations relating to the valuation of the equity shares in a letter dated August 27. The company has revised the pricing following the observations.
EGM on Sept 17
An extraordinary general meeting of shareholders is scheduled for September 17 to consider the preferential issue.
The revised proposal involves the issue of 12.32 lakh equity shares to members of the promoter group.
Promoter group to subscribe
Under the proposal, TSF Investments Ltd will be allotted 10.27 lakh shares for ₹150 crore.
Srivats Ram will receive 1.03 lakh shares for ₹15 crore. Nivedita Ram and Gita Ram will each be allotted 51,334 shares for ₹7.50 crore.
Revised pricing addresses NSE observations
The preferential issue will raise ₹180 crore from the promoter group, subject to shareholder and other applicable approvals.
The revised pricing is intended to address the valuation-related observations raised by the NSE while retaining the proposed fund-raising size.