Shares of Jay Bharat Maruti rose 5% in early trade on September 13 after the company said its board would consider a proposal to boost earnings at its annual general meeting scheduled for September 13. September 16.
At 9:57 am, the stock was trading 3.9 per cent higher at Rs 279.95 on the National Stock Exchange.
The company has not disclosed details about how it plans to use the proceeds from the fundraising. However, in May, the company announced plans to invest Rs 300-350 crore in phases to set up two manufacturing units in Kharkhoda, Sonipat, Haryana and SMG Companies` Park in Gujarat.
The new Sonipat plant will increase the company’s capacity, helping it meet the needs of Maruti Suzuki’s upcoming manufacturing plant at IMT Kharkhoda, which is expected to become operational in 2025. Additionally, Jay Bharat Maruti also plans to set up an assembly unit at its new plant in Gujarat to provide auto assembly.
For context, Jay Bharat Maruti is a joint venture between JBM Group and Maruti Suzuki India.
The stock is up more than 29% in the past three months, although last week it was down more than 3%. These three-month gains come despite the company’s disappointing results in the June quarter, with net profit down 35% as well as revenue down nearly 4%.
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