Nod for demerger pushes Amforge up 7.8%

DALAL STREET SPIKES

Amforge Industries shot up 7.8 per cent on Tuesday to reach a high of Rs 246.05. It ended the day with a gain of 4.25 per cent to Rs 238.

The company's shareholders approved a composite scheme of arrangement. The stock had touched a 52-week high of Rs 277.4 on January 16.

The approved scheme includes the demerger of its Chakan plant and its amalgamation with Mahindra Automotive Steels. The shareholders also approved a reduction in capital from equity share of Rs 10 to Rs 2.

The company supplies products to leading car models such as Tata Indica and Hyundai Santro. The company also caters to 70 per cent of Maruti's forging requirements.

For the December FY06 quarter, the company posted a net profit of Rs 4.95 crore on net sales of Rs 72.57 crore.