The RK Forgings stock price has surpassed its previous high of Rs 998.35 touched on July 5, 2024. At 12:53 PM, the scrip was trading 5 per cent higher at Rs 1,000.60, as compared to 0.08 per cent decline in the BSE Sensex.
RK Forgings, via an exchange filing said that the board has also given an approval for an investment of Rs 57.5 crore to set up the facility, which will primarily cater to electric vehicle (EV) market. The project will be set up with total installed capacity of 3,000 MT per annum and is expected to be commissioned by Q2FY26. At the optimum capacity the project will generate additional revenue of Rs 175 crore per annum for the company, it added.
In its endeavour to get in light weighting to improve the performance, fuel efficiency and reduce environmental impact of a vehicle, the RK Forgings has decided to enter into Aluminium Forging, the company said.
In a separate exchange filing, RK Forgings said the company has entered into Share Purchase Agreement (SPA) to sell 100 per cent stake in its wholly-owned subsidiary, Globe All India Services Limited to Yatra Online, for a cash consideration of Rs 128 crore (net of debt).
As part of the company’s strategic product rationalisation initiative, the management said the company has decided to focus on its core segments particularly in forged, machined and fabricated products for diverse sectors such as Automotive, Railways, Oil & Gas and Power, among others, where the company sees a great potential for growth and expansion. The cash proceeds from this transaction will further deleverage and strengthen the Balance Sheet, the company added.
RK Forgings is a critical safety item supplier for undercarriage, Bogie & Shell parts for railway passenger coaches and locomotives. The company is a preferred supplier to original equipment manufacturers (OEMs) like Tata Motors, Ashok Leyland, VE Commercial and Daimler in India and to Volvo, Mack Trucks, Iveco, DAF, Scania, MAN, UD Trucks andFord Otosan in the overseas markets. It also supplies globally to Tier 1 axle manufacturers like Dana, Meritor and American Axles.
First Published: Sep 03 2024 | 1:30 PM IST
