Bharat Forge is up in the green today, opening stronger at Rs.398 from close of Rs.394 and going on to hit an intra day high at Rs.448.10, rising almost 14%. This is not too far from its 10% UC of Rs.453.
The stock price has been up since past two days on unconfirmed news reports that it is investing Rs 399 crore for setting up a new forging and machining facility in the North Carolina, USA.
But what the company announced yesterday evening was its investment of Euro 11.35 million or Rs.89 crore for a 50% stake in Germany based Refu Drive GmbH.
This is a 50:50 JV with REFU for development and manufacture of electric vehicle components.
Both parties will have joint management with equal rights to appoint board with equal capital contribution and representation. Each party as a shareholder of the proposed JVC, will have affirmative rights on certain businesses, strategic and governance matters.