Goetze India zooms on stake sale buzz

DALAL STREET SPIKES

Goetze (India) surged following reports that Federal Mogul, one of the promoters of the company and a US auto-parts major, will increase its holding in the company to 50.1 per cent by acquiring the 24.64 per cent stake held by the Anil Nanda group.

The scrip leapt 19.98 per cent to close at an all time-high of Rs 305.30. The counter witnessed heavy volumes of 6.7 lakh shares. The sale, according to the reports, would take place on or after 12 May 2006 at a price of Rs 222.50 per share. The US firm may use the Indian company as an outsourcing hub.

Goetze India's product range covers piston rings, pistons, cylinder liners, light alloy castings and sintered products. The company is the largest manufacturer of pistons and piston rings in India.