Shares of auto component manufacturer JMT Auto rose 5 per cent in early trade on Bombay Stock Exchange (BSE) after rival Amtek Auto acquired a 51.27 per cent stake in the company for about Rs 110 crore.
Arvind Dham's USD 2-billion Amtek Auto would acquire shares of JMT at Rs 148.70 a share, a 28% premium over the current market price. The company would fund the entire transaction through internal cash accruals and debt.
Buoyed by acquisition, shares of JMT Auto gained as much as 4.99 per cent to trade at Rs 121.95 a piece on the BSE.
In a similar fashion, shares of the company spurted 4.22 per cent to Rs 122.55 a piece on National Stock Exchange.
Meanwhile, the broader benchmark Sensex was quoting at 19,162.43, up 286.42 points or 1.52 per cent at 10:02 hours.