Post-rights, the company's paid up capital will rise from Rs 9 crore to around Rs 13 crore. A part of the TVS Suzuki group, Lakshmi Auto has a very low floating stock with public holding being 23 per cent. The promoters hold close to 67 per cent and the balance of the equity is held by financial institutions.

The company supplies engine components to TVS-Suzuki Ltd (TSL) for its motorcycles, mopeds and scooty. The company has drawn a Rs 50-crore capital expenditure plan for producing some ofthe components required for the scooter project of TSL and components for four stroke models of motorcycles and new models of mopeds to be introduced by TSL in future. Besides the rights issue, State Bank of India has sanctioned Rs 20 crore-term loan for the project. The company is expected to achieve a growth in turnover of about 15 per cent during the current fiscal.

The company had achieved a total income of Rs 32.85 crore for the fiscal 1997-98 against the projected total income of Rs 34.32 crore in the letter of offer dated February 23, 1996 for the company's rights issue. Gross profit before interest and depreciation was Rs 16.39 crore against Rs 17.05 crore projected and net profit after tax Rs 8.25 crore against the projected Rs 6.30 crore. For the first six months of the current fiscal, the company recorded a higher turnover of Rs 19.72 crore against the half year figure of Rs 15.11 crore last year. However, interest cost has shot up from Rs 69 lakh to Rs 1.53 crore. Despite this, the companyrecorded a growth in net profit from Rs 3.51 crore to Rs 5.71 crore.