Bharat Forge jumps almost 3%

Bharat Forge is in the limelight today morning, currently up almost 3% at Rs.428.30, just a tad lower than its intra day high point of Rs.429. Its 52-week high is at Rs.449.

The stock has spurted up today on the back of its announcement that its Germany based subsidiary, Bharat Forge Aluminumtechnik GmbH & Co KG (BFAT), has won a multi-year contract worth Euro.250 million. This order is from an German OEM for supply of suspension components.

To fulfill this order, BFAT is expanding its capacity by adding a new press line with all auxiliary equipment including melting which will be commissioned in January 2015. This plant will be in the state of Saxony at Brand-Erbisdorf, costing Euro 31 million. This is to be funded through a mix of internal accruals, debt & state subsidies.