Shares of Sona BLW Precision Forgings Ltd gained 2% and hit an intraday high of Rs 649.70 on 22 October after the company announced the inauguration of a new plant in Manesar, Haryana, for its driveline business. 

In its regulatory filing, the company said that the facility is located in the Industrial Estate at IMT Manesar and the production at the facility began on 21 October. The new plant will help the company meet the rising demand for their driveline products, boosting their manufacturing capacity. 

Earlier in September, the company raised Rs 2,400 crore that saw participation from investors, including ICICI Prudential Fund who acquired 8.33% stake, while SBI Mutual Fund acquired a quarter of the company’s equity issue. 

The company plans to use these funds from the Qualified Institutional Placement (QIP) to strengthen its capital structure and support both its organic and inorganic growth strategies.

In its quarterly earnings for July-September, the company reported a 26.7% year-on-year increase in net profit to Rs 141.9 crore against Rs 112 crore reported in the same quarter of the previous fiscal year. 

The revenue from operations of the company stood at Rs 891.2 crore, marking a 21.8% YoY increase from Rs 731.4 crore reported in the same quarter of the previous financial year. 

At 12:24 pm, the shares of Sona BLW Precision were trading 0.83% higher at Rs 638.85 on NSE. 

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