Mahindra CIE surges 16% in two days, hits 52-week high on plans to acquire 27% stake in Strongsun Solar


Published On: Friday, December 16, 2022 | By:

Mahindra CIE surges 16% in two days, hits 52-week high on plans to acquire 27% stake in Strongsun Solar

Shares of Mahindra CIE Automotive hit a 52-week high of Rs 333.90 as they rallied 6 percent on the BSE in Friday's intra-day trade despite overall market weakness. In the past two trading days, the stock of the auto components & equipment company has surged 16 percent after the board reviewed future plans of the company's German forging operations. Mahindra CIE has subscribed to 303,250 equity shares of the company which will be allotted on or before 5th January 2023. After the allotment, Mahindra CIE will hold a 27 percent stake in Strongsun. The stock has shown a growth of nearly 50 percent in the last six months. In the past year, it has given a positive return of over 25 percent. In the last five years, the stock has gained almost 26 percent.“Strongsun is setting up two captive generating plants of the capacity of 7 MWp and 3 MWp to supply captive solar power from these plants to Mahindra CIE Automotive foundry division at urse (7 MWp) and magnetics products division at Bhosari

 (3 MWp) respectively.,” said the company in a filing.On December 14, Mahindra CIE's board reviewed the future plans of the Company’s German Forging Operations comprising CIE Forging Germany GmbH (CFG) and its subsidiaries and a proposal approved by the board of directors of CIE Galfor S.A. (Galfor), the immediate holding company of CFG.The company’s German forging operations supply forging parts primarily for the European truck industry. Galfor, a wholly owned subsidiary of the Company, also supplies forging parts to the light vehicles industry from its own plant and other subsidiaries in Europe.

The company said the light vehicles industry in Europe is seeing a rapid transition to Electric Vehicles (EVs) and the company is focused on managing this transition. The company also wants to benefit from the growth opportunities emerging in the Indian automotive industry.

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