Small Cap Auto Ancillary Stock Surges After Board Approves Setting Up Subsidiary In Mexico

At its meeting held on September 28, 2023, the Investment Committee of the Board of Directors of Rane (Madras) Limited approved the establishment of a Wholly Owned Subsidiary in Mexico. The name of the subsidiary would be Rane Automotive Components Mexico S de R.L. de C.V. (RACM).

To meet the needs of customers in Mexico and the North American region, RACM will build a greenfield manufacturing plant to produce steering and linkage car components.

The company said in an exchange filing, "We would like to inform you that the Investment Committee of the Board of Directors of the Company at its meeting held on September 28, 2023, has approved setting up of a Wholly Owned Subsidiary in Mexico viz., M/s. Rane Automotive Components Mexico S de R.L. de C.V. (RACM). RACM will establish a greenfield manufacturing facility to manufacture steering and linkage auto components catering to customers in Mexico and North American Region."

Stock Outlook

Rane (Madras) Limited's stock closed at Rs 880.95 apiece up 2.48% or Rs 21.35 on the BSE. In a week, the stock gained 3.49% in 1 week. It gained 33.87% in 1 month. It gained 145.56% in 1 year, and 308.23% in 3 years, respectively. It gave 80.69% positive return in 5 years.

The stock hit a 52-week high price on Sept 15, 2023, at Rs 953.55 apiece and a 52-week low price on Dec 26, 2022, at Rs 340.10 apiece on the BSE. It has a market of 1,432.89 Crore.

About The Company

Rane (Madras) Ltd. is an Auto Ancillary company engaged in the manufacturing of steering and suspension linkage products, steering gear products, and specialized aluminum high-pressure die-casting products. The company also prvides connected mobility solutions. The Company is a supplier to major manufacturers of Passenger Vehicles, Utility Vehicles, and Farm Tractors and has a strong presence in mechanical steering gears and hydrostatic gear systems.