Sona Koya Steering Systems has soared 17% to Rs 85.80, also its record high on the BSE in intra-day trade, on back of heavy volumes as media report suggests that the company’s co-promoter and Japanese auto-component maker JTEKT Corporation is planning to buy out Indian partner stake in the company.
At 11:03 am; the stock was up 12% at Rs 82.15 as compared to 0.47% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than four-fold with a combined 4.74 million shares or 2.4% of total equity of the company changed hands on the BSE and NSE so far.
The BSE said the Exchange has sought clarification from Sona Koyo Steering Systems on January 25, 2017 with reference to news published in www.economictimes.indiatimes.com dated January 25, 2017, "Kapurs likely to steer away from Sona Koyo."
The reply is awaited.
According to report, JTEKT is believed to have offered the Kapur family, which owns the Sona group, Rs 115-125 per share.
The Indian promoter along with Sona Autocomp Holding owns 25.28% of the joint venture company while the Japanese company owns 20.1%. Maruti Suzuki, which is a key customer of the company, owns 6.94% and the remaining stake are held by retail and institutional investors.
Sona Koya Steering Systems, with a market share of 50% is the largest manufacturer of steering gears in India and a leading supplier of hydraulic power steering systems, manual rack & pinion steering systems, collapsible, tilt and rigid steering columns for passenger vans and MUVs. In addition to this the company’s product also includes rear axle assemblies and propeller shafts.