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Shanthi Gears Ltd. Company History and Annual Growth Details

1972 - In 1969, 'Shanthi Engineering and Trading Company' was promoted
by Shri Subramaniam as a partnership firm in Coimbatore for the
manufacture of gear products. In 1972, a private limited
company, Shanthi Gear Products Pvt. Ltd., was incorporated &
tookover the partnership firm. The name was changed to Shanthi
Gears Pvt. Ltd. in February 1986. On 10th March, 1986, it was
converted into a public limited company. The two divisions of
the company are the Gears Division and the Gear Box Division.

- Gears Division caters to the needs of textile and other
industries as the supplier of original equipment and Gear Box
undertakes the design and manufacture of gear boxes for various
industries. The Company is licensed to manufacture 96,000 nos.
of gear wheels and 3,000 nos. of gear boxes.

- The main objective of the company include the design and the
manufacture of industrial gears and gear boxes.

1984 - Till date 410 shares issued without payment in cash during 1972
as consideration for the take over of the business of the
partnership firm 'Shanti Engineering & Trading Company'. 2,000
No. of equity shares issued as bonus shares in proportion 1:1 in

1985 - Equity shares subdivided. 3,20,000 bonus equity shares of Rs. 10
each then issued in proportion 8:1 and these were allotted on
10.3.1986. 6,40,000 No. of equity shares of Rs. 10 each then
issued at par out of which 2,40,000 shares to promoters,
directors, etc., and 32,000 shares to employees (including Indian
working directors)/workers of the company were reserved for
preferential allotment. All except the employees quota shares
was taken up. The balance shares along with 32,000 shares not
taken up by the employees were offered for public subscription
during May 1986. 1,00,000 additional shares allotted to the
public to retain oversubscription.

1986 - In the company was negotiating collaboration agreement with a few
manufacturers abroad (Belgium, U.S.A. and Japan) for the
manufacture of helical gear boxes.

1987 - During the Company privately placed with SBI Capital Markets
Ltd., 45,000-14% secured non-convertible debentures of Rs. 100
each. These debentures are redeemable at a premium of 5% at the
end of the 7th year from the allotment date, i.e., 25th January,

1989 - During the Company implemented a modernisation/expansion
programme with the assistance of term loans from SBI, IDBI as
also from internal accruals.

1991 - During the Company issued 3,30,000 - 17% partly convertible
debentures of Rs. 100 each on Rights basis.

- Part 'A' of Rs. 60 was converted into one equity share of Rs. 10
each at a premium of Rs. 50 per share on 11th December 1992.
Accordingly 3,30,000 shares allotted.

- Part 'B' of Rs. 110 of each debenture was to be redeemed at par
in 3 instalments of Rs. 30, Rs. 35 and Rs. 35 each at the end of
6th, 7th and 8th year respectively from date of allotment.

- As per the approval accorded on 20th May 1994, the promoters took
up 60,000 warrants and further surrendered the same the exchange
of 6,00,000 equity shares at the rate of Rs. 7.50 per share on
31st October 1994.

- Shanthi Sales Pvt. Ltd., is a wholly owned subsidiary. This
subsidiary is the sole selling agent of the Company's products
and is retained as selling agent by a few other manufacturers.

1993 - The Company has issued 17% Partly Convertible Debenture of Rs
160/- each for Rs. 528 lakhs.

1994 - 3,40,000 No. of Equity shares issued on preferential basis.
17,70,000 bonus equity shares issued in propn. 1:1. 6,00,000
shares allotted on preferential basis.

1995 - Equity shares fully paid-up.

1996 - 17,600 shares allotted to the members of Shanthi non-Ferrous
castings (P) Ltd. as per the scheme of amalgamation.

1997-99 - NO NEWS

2000 - Crisil has upgraded the A+ rating assigned to the Rs 2.31-crore
NCD issue of Shanthi Gears to AA-.

2002-The Board of Directors of Shanthi Gears at its meeting held today July 24, 2002 has appointed Ms S Sangeetha as Whole Time Director.


-Shanthi Gears Ltd has informed that the Company's equity shares have been delisted from Madras Stock Exchange Limited w.e.f. November 28, 2003.

-Shanti Gears Ltd shares delisted from Coimbatore Stock Exchange Ltd w.e.f March 31, 2004

- Shanti Gears forays into heavy gears segment


-Shanthi Gears Ltd has informed that ICRA has assigned LAA / A1+ rating to the bank Limits of the Company.
Oct 26, 12:00 am
Oct 26, 4:14 pm
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