ABC Bearings, Timken India stocks rally on nod to merger

 BT Online        Last Updated: July 6, 2017  | 13:26 IST
ABC Bearings Timken India stocks rally on nod to merger

The nod to merger of ABC Bearings with Timken India Ltd sparked a rally in stocks of both firms on Wednesday.

The ABC Bearings stock hit its 52-week high of Rs 285 and was locked in upper circuit of 20 percent throughout the day. It closed at Rs 285 on the BSE.

The Timken India stock too rose 15.25 percent or 103 points to 779 level on the BSE.

The merger is likely to be completed in the quarter ended March 31, 2018.

Under the deal, Timken India will issue five equity shares of Rs 10 each, fully paid up to the equity shareholders of the ABC Bearings for every eight equity shares of Rs 10 each held by them.

As on March 31, 2017, the net worth of ABC Bearings stood at Rs. 138.81 crore. Net worth of Timken India was at Rs 617.9 crore till the same period.

While ABC Bearings recorded a turnover of Rs 190.35 crore, Timken India posted Rs 1,127.1 crore in turnover for the year ending March 31, 2017.

ABC Bearings is engaged in the business of engineering, product design, manufacturing, distribution and sale of bearings including inter alia taper roller bearings, cylindrical roller bearings, spherical roller bearings and slewing bearings; and procurement, distribution and sale of other bearings, grease, oil and UJ Cross not manufactured by the company but sold under the "ABC" brand.

Timken India is engaged in the business of engineering and manufacturing bearings and mechanical power transmission components including gear drives, couplings, belts and chain. The firm also provides industrial service-including those in the nature of bearing repair and powertrain rebuild.

Timken India is a subsidiary of The Timken Company which is a US based leading manufacturer of taper roller bearings, also the main product currently being manufactured by ABC Bearings.

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