FAG hikes stake in Indian arm

MUMBAI, FEB 25: FAG Kugelfischer George Schaefer AG, Germany, has hiked its equity holding in FAG precision Bearings Ltd to 51 per cent (earlier 40 per cent). FAG Precision had reported a sales turnover of Rs 128.32 crore for the last financial year of 9 months which on an annualised basis works out to Rs 171.00 crore keeping a growth of 6 per cent over the turnover during the last financial year 1997-98. The company has repeatedly shown a positive bottom line in spite of recession in the bearings sector.

The German firm has been working towards increasing its equity in the Indian operations since 1997. After the first unsuccessful attempt in 1997, at a recently convened EGM the FIs voted for the resolution with a provision to obtain their permission for issue price. The firm later approached the institutions and agreed for a preferential allotment of additional shares at Rs 50 per share.