Bharat Forge shares rally on merger of units

Reuters Market Eye - Shares in Bharat Forge rose as much as 5.9 percent to hit their highest level since April 2011, after the company said it will merge two of its units.

The engineering company said late on Monday that Kalyani Alstom Power Ltd, a joint venture subsidiary of Bharat Forge and Alstom Power Holdings, will be merged with Alstom Bharat Forge Power Ltd.

Consolidation of subsidiaries along with improving product mix are likely to boost profitability of the company, analysts said.

Last week Bharat Forge reported a 97 percent increase in its December quarter net profit.

At 12:01 p.m., Bharat Forge shares were up 4.8 percent to 364 rupees.

 

(Reporting by Indulal PM)