Shares of Bondada Engineering Ltd hit a 5% upper circuit on 1 January after the company announced acquiring a 60% stake in Atpole Technologies.

In its regulatory filing, the company said that in the board meeting held on 29 December, the Board of Directors of the company approved the acquisition of a substantial stake of 30,000 equity shares that has a face value of Rs 10 each in the paid-up equity shares capital that is equivalent to 60% stake in Atpole Technologies Pvt Ltd.

Through this acquisition, Atpole will become a subsidiary of the company, which will help the company enter the Renewable Energy space. Atpole Technologies is a leading manufacturer of advanced torque motors and controllers for electric two- and three-wheeler vehicles, drones, defence, and industrial application motors.

Through this acquisition, the company is planning to rapidly increase its mark in the BLDC motor business segment by serving all-electric vehicle manufacturing companies and synergizing with its existing businesses.

Bondada’s total order books stand at Rs 1,695 crore, whereas it has Rs 1,245 crore worth of orders in pipelines.

In its quarterly report for July-September, the company reported an 80% year-on-year increase in its net profit to Rs 18 crore during the quarter from Rs 10 crore reported in the same quarter last year.

At 3:30 pm, the Bondada Engineering shares closed 5% higher at Rs 17.10 on BSE.