Force Motors zooms over 100% in five weeks

So far in August, the stock surged 50% after Force Motors said that its promoters raised stake in the company to 59.72% from 56.54%.

Shares of Force Motors has zoomed 17% to Rs 858, extending its one month long rally, on back of heavy volumes on the Bombay Stock Exchange (BSE).

The stock of car and utility vehicles maker is currently trading at its highest level since March 2011. The trading volumes on the counter more than doubled with 1.27 million shares changing hands so far against an average 600,000 shares that were traded daily in past two weeks on BSE.

Since July 15, the stock appreciated 102% from Rs 425 compared to 4.8% gain in benchmark S&P BSE Sensex.

So far in August, the stock surged 50% from Rs 563 after Force Motors informed BSE that the promoters of the company raised their stake in the company by more than 3 percentage points through creeping acquisition route.

Jaya Hind Investments Private Limited and others, have acquired 4,20,000 equity shares of Rs 10 each (in demat form) of Force Motors from the Market on July 31, 2014, the company said in a regulatory filing.

With this acquisition, the total holdings of the promoter group in the company increased to 59.72% from 56.54% at the end of June 2014 quarter. Force Motors, majority owned by the Firodia family.

Meanwhile, Bajaj Holdings and Investment, the holding company of the Bajaj Group, have offloaded its entire stake in Pune-based Force Motors during past couple of months. Bajaj Holdings and Investment held 15.94% stake in Force Motors in June quarter, data shows.

Force Motors sells a range of vehicles, including small commercial vehicles, multi-utility vehicles (MUVs), light commercial vehicles, sports utility vehicles (SUVs) and agricultural tractors.