Usha Martin Limited, the global leader in wire ropes, has proposed a stock split:

Subject to approval from the shareholders, each Rs 5 share will be split in five with a face value of Re 1. Usha Martin’s board today approved the proposal. The shareholder’s AGM will be in end-July. “We took the decision on the basis of suggestions from the shareholders and observations on the trading volume of the shares,” Rajeev Jhawar, Usha Martin MD, said. The company has issued 4.78 crore shares, of which 2.69 crore shares are traded in the market. This is because the promoters’s stake in the company is 43.71 per cent. The split means more shares will be traded, raising the interest of the market players. On the BSE, the stock touched a 52-week high of Rs 252.90 before closing at Rs 244.75. The stock has gained Rs 37.80, or 18.27 per cent, in the past seven trading sessions. Profit up The company has reported a profit after tax of Rs 29.02 crore in the fourth quarter of 2006-07 compared with Rs 20.38 crore a year ago, an increase of 42 per cent. Net sales grew by 12 per cent to Rs 401.86 crore from Rs 360.01 crore a year ago. The consolidated net profit, which takes into consideration the performance of the subsidiaries of the company, is Rs 137.44 crore for 2006-07 compared with Rs 84.35 crore a year ago. Net sales increased by 9 per cent to Rs 1,964.71 crore from Rs 1,798.54 crore. Speciality steel production grew by 11 per cent and global wire rope production by 10 per cent in 2006-07. The board has recommended a dividend of Rs 3.75 per share on a face value of Rs 5. Usha Martin joint managing director P. Bhattacharya said the company’s captive iron ore mine would meet its entire requirements from this fiscal. This would lead to substantial savings. The captive coal mine would go on stream from the next fiscal, which would improve its bottomline. China office The company is planning to set up an office in China. “We will study the market in China for a year before deciding our next step,” Jhawar said. He said the company was planning to acquire a wire rope distribution company in Netherlands. The negotiations are going on with the target company, and the deal size will be $2-3 million. “It should work out in the next two months,” Jhawar said.