Cummins India rose 2.38% to Rs 1,113.35 at 10:04 IST on BSE after the company said it has completed acquisition of the remaining shares of Cummins Svam Sales & Service, making it a wholly-owned subsidiary of the company effective 1 October 2015.
The company made the announcement after market hours on Thursday, 1 October 2015.
Meanwhile, the S&P BSE Sensex was up 382.04 points or 1.46% at 26,602.99.
On BSE, so far 2,641 shares were traded in the counter as against average daily volume of 26,222 shares in the past one quarter.
The stock hit a high of Rs 1,114.65 and a low of Rs 1,088.20 so far during the day. The stock had hit a record high of Rs 1,246.70 on 7 August 2015. The stock had hit a 52-week low of Rs 646.80 on 7 October 2014.
The stock had underperformed the market over the past one month till 1 October 2015, gaining 0.46% compared with Sensex's 2.04% rise. The scrip had, however, outperformed the market in past one quarter, surging 17.28% as against Sensex's 6.42% fall.
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The large-cap company has equity capital of Rs 55.44 crore. Face value per share is Rs 2.
It may be recalled that Cummins India's board of directors had on 28 May 2015, approved the proposal to increase the existing shareholding of the company in Cummins Svam Sales & Service from 50% to 100%, for an amount not exceeding Rs 6.5 crore. Cummins Svam Sales & Service was established as a 50:50 joint venture between Cummins India and Svam Power Plants. Cummins Svam Sales & Service is an authorized dealer of Cummins India in the districts of Bulandshehar, Gautam Buddh Nagar & Ghaziabad in Uttar Pradesh and Union Territory of Delhi for selling Cummins engines, parts and accessories, and providing service support to the engines.
Cummins India's net profit declined 0.6% to Rs 210.73 crore on 24.2% growth in net sales to Rs 1282.48 crore in Q1 June 2015 over Q1 June 2014.
Cummins in India is a group of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions and electrical power generation systems.
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