Bharat Forge surged 4.67% to Rs 347.30 at 10:31 IST on BSE after the company said its indirect subsidiary in Hong Kong has divested its 51.85% stake in its Chinese JV operations to its JV partner for a consideration of $28.208 million.
The announcement was made during trading hours today, 13 January 2014.
Meanwhile, the S&P BSE Sensex was up 284.77 points or 1.37% at 21,043.26.
On BSE, so far 32,000 shares were traded in the counter as against average daily volume of 53,889 shares in the past one quarter.
The stock hit a high of Rs 349.05 so far during the day, which is also its 52-week high for the counter. The stock hit a low of Rs 336 so far during the day. The stock had hit a 52-week low of Rs 185.55 on 6 August 2013.
The stock had outperformed the market over the past one month till 10 January 2014, advancing 3.72% compared with the Sensex's 2.34% fall. The scrip had also outperformed the market in past one quarter, jumping 26.93% as against Sensex's 2.4% rise.
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The mid-cap company has equity capital of Rs 46.56 crore. Face value per share is Rs 2.
Bharat Forge said its indirect subsidiary in Hong Kong i.e. Bharat Forge Hongkong has divested its 51.85% stake in its Chinese joint venture (JV) operations (FAW Bharat Forge (Changchun) Company) to its JV partner, China FAW Corporation, for $28.208 million (Rs 175 crore) ending its 8 years old JV in China.
Bharat Forge said it has since inception of JV in 2006, had over a period of time invested Rs 178 crore in 4 tranches.
Although the transaction was completed today, 13 January 2014, the effective date for divestment will be 31 October 2013, Bharat Forge said. The divestment will have a positive impact on Bharat Forge's cash flows and profitability on a consolidated basis, the company said.
Bharat Forge's net profit fell 6.2% to Rs 96.38 crore on 3.6% decline in net sales to Rs 821.38 crore in Q2 September 2013 over Q2 September 2012.
Bharat Forge, the flagship company of Kalyani Group is a global forgings conglomerate. It is the largest exporter of auto components from India and leading chassis component manufacturer in the world.
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