Shares of Jay Bharat Maruti rallied 5 percent in early trade on September 13 after the company announced that its board will review a proposal to raise finds at the Annual General Meeting scheduled for September 16.
At 9.57am, the stock was trading 3.9 percent higher at Rs 279.95 on the National Stock Exchange.
The company did not disclose details on how it plans to use the proceeds from the fundraise. Back in May, however, the company had announced plans to invest Rs 300-350 crore in phases to set up two manufacturing units in Kharkhoda, Sonipat, in Haryana and SMG Suppliers' Park in Gujarat.
The news plant at Sonipat will increase the company's capacity, enabling it to meet the demands of Maruti Suzuki's upcoming manufacturing plant at IMT Kharkhoda, which is scheduled for commissioning by FY2025. In addition to this, Jay Bharat Maruti plans to establish an assembly unit within its new Gujarat facility to provide automotive assemblies.
For context, Jay Bharat Maruti is a joint venture between JBM Group and Maruti Suzuki India.
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The stock has surged over 29 percent in the past three months, despite falling over 3 percent in the past week. These gains on a three-month basis were despite the company's disappointing earnings in the June quarter which saw a 35 percent drop in net profit, along with a near 4 percent fall in revenue.
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