Shares of Sterling Tools were locked in the upper circuit band of 20 per cent at Rs 215 on the BSE on Tuesday after the company said it has entered into a Joint Venture (JV) agreement with Jiangsu Gtake Electric Company, a China based company.
The JV Company, which will commence production by Q1FY21, will be a subsidiary of Sterling Tools with an equity ratio of 51:44. The company said the two companies have agreed to join hands to provide the Indian electric original equipment manufacturers (OEM's) with best in class motor control units (MCUs). READ HERE
"The agreement calls for the companies to manufacture MCU's domestically, to cater to the Indian automotive market by developing local design engineering, application support and after sales service capabilities as per the requirements of the Indian industry," it added.
Sterling Tools is engaged in the manufacturing as well as marketing of high tensile cold forged fasteners and is a reputed component supplier to Indian & Global automotive companies. The company plans to cater to the component requirements of the Indian EV industry and is evaluating tie-ups with global firms for various products & technologies.
The trading volumes on the counter surged multiple-fold. A combined 236,808 equity shares have changed hands on the NSE and BSE till 01:41 pm. There were combined pending buy orders for 23,267 shares on both the exchanges, data shows.