Shares of Ramkrishna Forgings Ltd rallied 5% and hit an intraday high of Rs 1,010.95 per share on 3 September after the company secured approval from the Board of Director for setting up a aluminium forging facility at Jamshedpur. 

In its regulatory filing, the company said that the board has given approval to invest Rs 57.5 crore for setting up the facility that will primarily cater to the EV (Electric Vehicle) market. 

The factory is expected to be commissioned by Q2FY26 and will have a total installed capacity of 3,000 million tonnes per annum. At its peak capacity, the facility will generate additional revenue of Rs 175 crore per annum. 

To enhance vehicle performance and fuel efficiency and minimise environmental impact, RK Forgings has announced that it has decided to venture into Aluminium Forging as part of its lightweight initiatives.

In a different regulatory filing, the company said that they have entered into a share purchase agreement to divest its entire 100% stake in its wholly-owned subsidiary, Globe All India Services Ltd, to Yatra Online for a total cash consideration of Rs 128 crore. 

As part of its strategic product rationalisation plan, the company announced that it will concentrate on its core segments, particularly in the areas of forged, machined, and fabricated products. These sectors include Automotive, Railways, Oil & Gas, and Power, where the company sees significant growth and expansion opportunities. The management added that the cash proceeds from this transaction will be used to reduce debt and strengthen the balance sheet.

At 3:30 pm, the shares of Ramkrishna Forgings closed 1.70% higher at Rs 975.05 on NSE. 

Discover the next big investment! Unicorn Signals’ IPO screener helps you identify promising initial public offerings. Download Unicorn Signals and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!