Wabco India weakens on increase in royalty payment

Shares of Wabco India were down 7% at Rs 5,786 after the company said that it would have to incur a higher royalty payment.

The company in a release said that it has entered into an agreement which is on arms-length basis with M/s WABCO Europe BVBA, a related party for payment of royalty at the rate of 4% on the net sales for using the licensed intangibles and technical knowhow.

Currently, Wabco India is paying royalty at the rate of 1% of domestic sales for using the brand name.

The stock opened at Rs 5,823 and touched a high of Rs 5,886. At 11:10am, over 33,000 shares were traded on both the stock exchanges.