AIA Engineering surges on settlement agreement with MI

The stock has surged 6% to Rs 491 on the Bombay Stock Exchange.

AIA Engineering has surged 6% to Rs 491 in otherwise weak market after the company said it has entered into settlement agreement with Magotteaux International (MI) Belgium, to avoid uncertainty of the outcome of further litigation and legal and other expense including of the current ongoing litigation and to resolve the dispute amicably and avoid further damages and litigation costs.

Pursuant to the said Settlement Agreement entered into with MI, the Company has paid $6.00 million on December 16, 2013 to MI in consideration of the dismissal of the litigation and mutual release from claims among the parties, AIA Engineering said in a regulatory filing.

Earlier, as on September 19, 2013 wherein the company had informed that in a patent infringement action between MI Belgium and the company, involving Sintercast products in USA, the United States District Court had passed a judgement awarding damages of approximately $7.2 million.

The stock opened at Rs 472 and touched a new high of Rs 494 on the BSE. A combined 121,161 shares have changed hands on the counter so far on both the exchanges.