Automotive Axles Share price

Automotive Axles Limited was promoted as a joint venture in1981 between the Kalyani Group and Rockwell InternationalCorporation U.S.A. with the object of setting up a plantat Hootagalli in Mysore Karnataka to manufacture 20000sets per annum of all types of complete automotive axlesand axle assemblies including components thereof andcorresponding brake sets. Commercial production commencedon July 1 1984.This delay in commencement of commercial production was dueto the following factors:1. time taken for obtaining the approvals for products fromOE customers2. delay in obtaining clearance for import of certaincritical equipment3. time taken for development of certain critical forgingsand training manpower to achieve requisite skill levelsThe Plant was set up at a cost of Rs. 303 million whichwas financed through term loans of Rs. 218.3 million anEquity issue of Rs. 82.5 million and the balance wasfinanced out of Central subsidies (Rs. 1.5 million) anddeferred credit (Rs. 0.7 million). The Company entered thecapital market with an issue of 1650000 Equity Shares atpar in July 1983 and the Issue was oversubscribed 8.03times.