Gujarat Apollo Industries was locked in 20% upper circuit at Rs 235.35 after the company said that it has entered into a joint venture (JV) agreement with Belgium-based PFH BV (Keestrack).
Apollo and Keestrack have decided to work jointly and in cooperation with each other for the purposes of carrying on the business of agricultural and farming machineries and components thereof as set in the agreement by forming a joint venture company in India and to be incorporated, operated and managed on the terms and conditions set out in the JV agreement.
The proposed joint venture will result in increased efficiencies and allow the company to offer improved products in the market, by harnessing each other's synergies.
The directors on the board of the joint venture company will be in the proportion of their shareholding in the new company.
Gujarat Apollo Industries will subscribe 2 lakh equity shares of face value of Rs 10 each at an issue price of Rs 10 each.
Accordingly, one of the directors of Gujarat Apollo Industries, listed entity, will be on the board of the new joint venture company as a representative of Apollo.
PFH BV Industries Limited will subscribe 2 lakh equity shares of face value of Rs 10 each at an issue price of Rs 10 each.
"The additional subscription will be done in a phased manner, Gujarat Apollo said in a statement.
Gujarat Apollo Industries is the flagship company of Apollo Group of industries and is manufacturer of crushing and screening equipment.
The company's consolidated net profit rose 56.91% to Rs 2.95 crore in the quarter ended June 2022 as against Rs 1.88 crore during the previous quarter ended June 2021. Sales zoomed 292.34% to Rs 29.19 crore in Q1 FY23 from Rs 7.44 crore in Q1 FY22.
On the BSE, 27,161 shares were traded in the counter so far compared with average daily volumes of 729 shares in the past two weeks.
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