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NEW DELHI: Sterling Tools Ltd, a leading manufacturer of fasteners, on Saturday said it plans to invest Rs 40 crore to boost capacity by setting up a new plant at Haryana.

The company also announced the issue of fully paid up bonus shares in the ratio of 1:1.

``The new plant will add 6,500 tonnes a year to the present capacity at 15,000 tonnes. The Rs 40-crore expansion has been funded through debt and internal accruals, with the debt component at Rs 26 crore,'' Mr Atul Aggarwal, Director, Sterling Tools Ltd, said.

The new plant would be commissioned by the end of this year, he said, adding that company's exports would receive a fillip with the commissioning of the plant.

``We expect exports to contribute 25 per cent of our total turnover in three years time, up from the current level of three per cent,'' Mr Aggarwal said.

He said the company had already tied up with tier I auto manufacturers in Europe and the US for supplying fasteners.

The Rs 126 crore company, which is mainly an original equipment supplier to the automotive industry, said its board had recommended issue of bonus shares in the ratio of 1:1. Post the bonus issue, the company's equity capital will rise to Rs 6.84 crore.

STL, which is at present listed only on the Bombay Stock Exchange (BSE), has applied for listing on the National Stock Exchange (NSE) as well.

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