Shares in Mahindra CIE Automotive surged over 18 per cent to Rs 171.90 on Tuesday after its shareholders approved the merger of five subsidiaries with itself.
Including today's surge, the stock has appreciated over 38 per cent in last two days. On Monday, the stock had closed 20 per cent higher at Rs 143.90.
Mahindra CIE Automotive, which was earlier known as Mahindra Forging, said in a filing to BSE on June 20 that its shareholders have approved merger of Mahindra Hinoday Industries (MHIL), Mahindra Ugine Steel Company (MUSCO), Mahindra Gears International (MGIL), Mahindra Investments India (MIIPL) & Participaciones Internacionales Autometal Tres SL and Mahindra CIE Automotive company.
Analysts say merger of its subsidiaries will increase the book value of the company leading to higher market valuation of its shares.
As of 11.55 a.m. shares in Mahindra CIE Automotive traded 15 per cent higher at Rs165.20 on BSE.
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