JBM Auto incorporates subsidiary; stock surges 12%, hits 52-week high

Shares of JBM Auto advanced 12 per cent to Rs 323, also its 52-week high, on the BSE on Wednesday after the company said it has formed a new company, JBM Ecolife Mobility Private Limited, to leverage growth opportunities in the electric vehicles segment.

“The Company has incorporated a wholly owned subsidiary company "JBM Ecolife Mobility Private Limited” as approved by Ministry of Corporate Affairs (“MCA”) vide certificate of incorporation dated 06 January, 2021,” JBM Auto said in a regulatory filing.

JBM Ecolife Mobility belongs to automotive sector and yet to commence its business operations. The incorporation of JBM Ecolife Mobility will leverage the growth opportunities in the evolving Emobility/ Electric Vehicles Segment including e-buses etc. and will help the Company in becoming more agile and customer-focused, it said.

JBM Auto is the flagship company of the $2.2 billion JBM Group. The company is the leading manufacturer of auto components, tooling and electric buses in the country.

The company is engaged in the manufacturing of sheet metal components, assemblies & Sub-assemblies, Tools, Dies & Moulds. JBM is primarily a Tier-1 supplier of key systems and assemblies to the automotive OEM industry and caters services to esteemed clients that include Ashok Leyland, Bajaj, Daimler, Fiat Chrysler, Ford, Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault, Nissan, Tata, Toyota, TVS, Volvo Eicher, Volkswagen and many more. The Group has alliances with more than 15 renowned companies globally and the associations include Arcelor Mittal, Cornaglia, Dassault Systems, JFE Steel, Ogihara, Solaris Bus & Coach S.A., Sumitomo, etc.

At 01:20 pm, JBM Auto was trading 8 per cent higher at Rs 311 on the BSE, as compared to 0.19 per cent decline in the S&P BSE Sensex. Around 300,000 equity shares have changed hands on the counter on the NSE and BSE, so far.