Eicher Motor gains ~1% as Royal Enfield inks Rs 3,000 crore agreement with Tamil Nadu

9 Jan 2024 , 11:47 AM

Eicher Motors’ shares rose roughly 1% in the morning session on January 9, a day after its subsidiary, Royal Enfield, clinched a Rs 3,000-crore deal with the Tamil Nadu government.

At around 11.39 AM, Eicher Motors was trading 0.27% higher at Rs 3,894.80 per piece, against the previous close of Rs 3,884.25 on NSE. The counter rose to an intraday high of Rs 3,923.85.

Royal Enfield, an Eicher Motors affiliate, plans to invest Rs 3,000 crore in Tamil Nadu over the next eight years for new product development, electric vehicles (EVs), and capacity creation. On January 8, the firm informed exchanges that this move is likely to result in around 2,000 jobs.

The memorandum of understanding inked with the Tamil Nadu government at an investor conference details plans for greenfield and brownfield projects, with a focus on product development and prospective internal combustion engine (ICE) capacity upgrades.

CEO B Govindarajan expressed thanks for Tamil Nadu’s cooperation, stating that the MoU includes infrastructure support and regulatory facilitation, such as constant electricity supply.

The stock has returned 22.49% over the previous six months, compared to an 11.14% rise in the benchmark Nifty.

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