Auto stock zooms 15% after Board plans to divest US subsidiary; Check the details 

by Trade Brains | May 17, 2023 | 7:03 pm | News, Trending News | 0 comments

Rane (Madras) Limited (RML) is engaged in the business of providing components for the transportation industry. It manufactures steering gear products, steering & suspension linkages products, and other articles of aluminium die-casting products. The company operates through two divisions namely the ‘Light Metal Castings’ and ‘Steering and Linkages’ division.

Today, through a regulatory filing over the BSE, the Rane (Madras)'s Board informed about its plans to divest M/s. Rane Light Metal Casting Inc., USA (LMCA), a wholly owned step-down subsidiary of the Company that was acquired in 2016. Moreover, the Board will seek approval of the shareholders for the same through a postal ballot.

On the above news, the flat movement in the stock price took a shift during the last couple of trading hours. The prices surged nearly 15 percent closing at a price of Rs 564.40. It even touched a new 52-week high mark at Rs 578.40.

LMCA is engaged in the business of manufacturing high-pressure aluminum die casting for ‘Automotive’ as well as ‘Non-Automotive’ applications. LMCA generated Rs 231.94 crores of turnover which comes up to 9.78 percent of the total consolidated turnover of RML.

Earlier, the subsidiary's divestment had a setback with respect to the existing business operations, but, the parent company plans better interest and would take appropriate actions.

Written by Amit Madnani

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