Wheels India to Raise ₹400 Crore to Fund ₹300 Crore Capex Expansion
Chennai-based auto components manufacturer Wheels India received board approval on Friday to raise up to ₹400 crore through a mix of equity and debt securities. The capital raise is aimed at supporting the company's future growth initiatives, which include a major capacity expansion.
The decision was made during a board meeting held on Friday. According to a company statement, Wheels India may raise the capital through multiple routes. These options include public issues, private placements, rights issues, preferential allotments, and Qualified Institutional Placements (QIPs). The final execution of the fundraising remains subject to receiving the necessary statutory and shareholder approvals.
The proposed capital raise comes at a time when Wheels India is actively pursuing growth opportunities across both its automotive and industrial business segments.
As part of its growth strategy, Wheels India has proposed a capital expenditure (capex) of around ₹300 crore in the 2027 fiscal year (FY27). This planned investment is higher than the capex of the previous fiscal year.
The company plans to use the FY27 capex to expand its manufacturing capacity for parts used in tractors, windmill components, hydraulic cylinders, and air suspension systems.
Management noted that the increased capex has been necessitated by strong demand across its various business lines. The demand has been particularly robust for air suspension systems, wind energy components, and hydraulics.
In the 2026 fiscal year (FY26), the company's bus air suspension business reported strong double-digit growth. This performance was primarily driven by the upgrading of state transport corporation fleets across the country.
Additionally, the rising penetration of the electric bus (e-bus) segment contributed significantly to the business growth. Wheels India is currently a leading supplier of bus air suspension systems in India.
The company also benefited from higher content per vehicle during the fiscal year, as some of its customers opted to install both front and rear air suspension systems in their vehicles.
