G G Automotive Gears, an auto ancillary company, is witnessing hectic activity in an otherwise dull market. On the Bombay Stock Exchange, the stock hit a recent high to settle at Rs 76.90 on Wednesday with more than 77,000 shares changing hands on the counter.
Interestingly, the stock has advanced 46.48 per cent in the last 12 trading session. While the volumes on the counter have jumped around 89 per cent from 56,000 shares on September 2 to 106,000 on September 17.
Dealers at a local brokerage house said, "The counter is witnessing hectic retail participants following recent development in the company."
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Recently, G G Automotive Gears had entered into an agency agreement with Alstom, Australia, in which the latter has been appointed as the exclusive distributor of the company for Australia and New Zealand for a period of five years.
Further, the company had announced the receipt of an export letter of credit (LC) for $65,100 from a major buyer - Alstom of New South Wales, Australia. On execution of the order, the company had announced that it expects to receive continuous orders worth at least $1-1.25 million every year.
Further, the company had announced that it expects a substantial increase in sales on a year-on-year basis as a result of the agreement, with total Australian market valued at $5 million annually.