Kirloskar Pneumatic Company was locked at the 10% upper limit of Rs 16.33 today after the company announced two key orders from ONGC.

There were outstanding buy orders for 40,900 shares at the upper limit. The stock surged after KPC today said that it has received two orders for supply of five units of skid mounted compressor packages from Oil & Natural Gas Corporation (ONGC). The aggregate value of the orders are Rs 34.41 crore (net of taxes).

A very thinly traded stock, KPC has surged sharply over the last few trading sessions in tandem with the broad-based rally in the market. From Rs 6.85 on 8 May 2003, the stock has gained 138% to the current Rs 16.33. Normally, daily volumes are just about 100-2000 shares on the counter. But, of late, average daily volumes have spiraled to over 20,000 shares.

During the year 2002, another group company K G Khosla Compressors was merged with Kirloskar Pneumatic Company.

KPC manufactures high pressure compressors, air and gas compressors, refrigeration compressors, hydraulic press vacuum pumps and grey iron castings. The main product of the company -- air and gas compressors -- are used by steel plants, fertiliser plants and by the general engineering industry.

The company suffered industrial unrest for a few years and the plant was locked out between September 1991 and June 92. A revival plan was prepared in consultation with financial institutions, including raising of fresh capital. In February 1994, the company came out with a rights issue at a premium to raise funds for a voluntary retirement scheme, for the reduction of a part of the high-interest borrowings and for long-term working capital. The revival plan has been sucessfully implemented.

In 1997, the company improved technology for gas compressors with the help of IHI Limited, Japan. The company has also tied up with Kobelco for dry screw compressors.