Bharat Gears shares gained 5 percent intraday on July 3 after acquisition of auto clutch maker that has business in India and abroad.
"Board of Directors, on July 2, approved the acquisition of 1,48,77,038 equity shares constituting 100 percent of the equity paid-up capital of Xlerate Driveline India Limited," the company said in its BSE filing.
Bharat Gears bought Xlerate for Rs 9.42 crore, at a price of Rs 6.33 per share from Raunaq EPC International Limited (REIL), and said would complete the transaction by October 31, 2019.
"The acquisition will give an established set up for a clutch manufacturing capacity, which is adequate for the future projected growth and would bring cost efficiency in certain areas and provide scope for improvement in operational synergies of auto components business," Bharat Gears reasoned.
Xlerate Driveline is in the business of manufacturing and trading of automotive clutches and has an established presence in the OEMs/OES of the clutch business in India and abroad.
The stock was quoting at Rs 99.30, up Rs 2.20, or 2.27 percent on the BSE at 1238 hours IST.
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