This Small-Cap Stock Hit 20% Upper Circuit After Signing A Joint Venture

Gujarat Apollo Industries Ltd. is a manufacturer of equipment and machinery that focuses largely on producing various models of mining and road construction and maintenance equipment to meet the demands of the vast majority of mining firms in India and other countries around the world. The business is credited for developing a number of groundbreaking construction technology, particularly machinery for building asphalt roads.

With PFH BV (Keestrack), the Gujarat Apollo Industries Ltd. has enterned into a joint venture. Both businesses have made the decision to operate their agricultural and farming machinery and component businesses jointly and cooperatively. By utilising one another's synergies, the proposed joint venture will increase efficiencies and enable the owners to provide better items on the market.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ("SEBI Listing Regulations"), we hereby inform you that a meeting of the Board of Directors of the Company held on Monday, September 12, 2022 at 4:00 PM, wherein the Company has entered into a Joint Venture Agreement with PFH BV on September 12, 2022," according to the company's regulatory filing on 12 September.

Gujarat Apollo Industries will subscribe to 2 lakh equity shares of the face value of Rs 10 each at an issue price of Rs 10 each, while PFH BV will subscribe to 2 lakh equity shares of the face value of Rs 10 each at an issue price of Rs 10 each. The additional subscription will be done in a phased manner. The additional subscription will be implemented in stages.

AT the time of writing, On BSE, the company is trading at its upper circuit limit of Rs 235.35, up 19.98 per cent from its previous closing of Rs. 196.15.

"Apollo and Keestrack have decided to work jointly and in cooperation with each other for the purposes of carrying on the Business of agricultural and farming machineries and components thereof as set in the agreement by forming a joint venture company (the "Company") in India and to be incorporated, operated and managed on the terms and conditions set out in the JV Agreement. The proposed joint venture will result in increased efficiencies and allow the Shareholders to offer improved products in the market, by harnessing each other's synergies," the company said in a release issued to the exchanges.