Sterling Tools up over 10% on pact with a Japan-based company

The stock rallied 13% to Rs 262, also its record high on BSE in intra-day trade.

Sterling Tools has rallied 13% to Rs 262, also its record high on BSE in intra-day trade, after the company said it has signed a business collaboration agreement with Japan-based Meidoh Co.

“The company has signed share subscription agreement with Meidoh Co and has accordingly approved the proposal to issue 1.8 million equity shares on preferential basis to it at Rs 246.60 per share,” Sterling Tools said in a BSE filing.

At 01:41 pm; the stock was up 10% at Rs 253 on BSE as compared to 0.27% decline in the S&P BSE Sensex. A combined 362,594 shares changed hands on the counter on BSE and NSE so far.

Sterling Tools engages in manufacturing high-tensile (HT) fasteners mainly for automobiles. The plant of the company is situated at Faridabad.