At one time in the past, Gajra Bevel Gears was a manufacturer of automobile gears. It was quite a renowned player in the HCV, LCV, tractor and utility vehicle segment. Unfortunately, it borrowed heavily and suffered heavy financial losses. The result was that the Company discontinued its manufacturing activity since 31.10.2006. Its plant was also seized by the provident fund authorities. It is presently a “Sick” company and a revival package is under consideration by the BIFR.
For the past several years, Gajra Bevel Gears has had no operations.
IFCI, which is the largest shareholder with an 18.91% stake, has been desperately seeking buyers. Today, it found a few. This included Ashish Chugh, who picked up 120,000 shares at Rs. 1.22 per share.
Ashish Chugh appears to be banking on a revival of Gajra. According to the last annual report, the Company has entered into a one-time settlement with IDBI, IFCI, MPAVN and MPSIDC. Only one secured creditor M.P. Financial Corporation is remaining. Maybe, that also has been settled as of date.
The economic environment is also ripe for revival. The company’s products will find acceptance in the Auto Industry’s original equipment and replacement market.
So, Gajra Bevel Gears is the classic “Heads I win, Tails I don’t lose much” must be Ashish Chugh’s calculation.