Smallcap auto component maker's stock skyrockets; here's what's driving the gains

Autoline Industries (AUTOIND) shares surged on Friday, after the auto component maker received an offer from Tata Motors to set up a facility in Sanand, Gujarat.

The Autoline Industries stock, traded on the bourses with the symbol AUTOIND, gained as much as 16.5 per cent to Rs Rs 75.2 on BSE during the session.

"The Board of Directors of the Company at its meeting held on Thursday, June 1, 2023 inter-alia, has considered the offer and approved the setting up of a new plant (unit) on the leased hold plot (to be allotted by Gujarat Industrial Corporation) at Sanand, Gujrat to expand the business and retain the existing business with OEM," Autoine Industries said in a regulatory filing.

The new unit proposes a capacity addition for producing automobile parts for 2,40,000 vehicles per annum and will require an investment of Rs 50 crore, the company added.

At 1:50 pm, Autoline Industries shares were left with a gain of 9.3 per cent at Rs 70.6 apiece. Tata Motors shares were up 0.3 per cent at Rs 536.9 apiece.

Autoline Industries shares: Past performance

The stock has grown 11 per cent in value in the past one year, in line with an 11.5 per cent rise in the headline Nifty index.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.