Shares of Rico Auto Industries
tanked 4% on the BSE in the afternoon session. The Board approved the acquisition of equity shares by Rico Auto and its step down subsidiary, Rasa Autocom Limited, in the 50:50 Joint Venture Company namely Magna Rico Powertrain Private Limited (JV Co.) from the Joint Venture Partner namely Magna Powertrain GMBH.
Post this acquisition, JV Co. will become a subsidiary of the company and the company along with its step down subsidiary will hold entire share capital of the JV Co, as per BSE filing.
Meanwhile, the company reported net revenue of Rs338.8cr in Q3FY19 as against Rs308.8cr, posting a growth of 9.71%. EBITDA stood at Rs36.5cr in Q3FY19 in comparison to Rs30.9cr in Q3FY18, registering a growth of 18.12%.
The board also gave the green signal to set up a new manufacturing plant at Halol in Gujarat for the manufacture of components for two-wheelers and four-wheelers.
This plant is projected to become operational from May 2019. The company will be required to make an initial investment of Rs1.1cr and the same will be met by means of internal accruals, the company said in the filing.
Rico Auto Industries Ltd is currently trading at Rs58.50 down by Rs2.3 or 3.78% from its previous closing of Rs60.80 on the BSE. The scrip opened at Rs61.45 and has touched a high and low of Rs61.45 and Rs58 respectively.