Engineering Stock Hits 5% Upper Circuit For 2nd Day, Gains 17% In 1 Week Amid Volatile Markets

Shares of Forbes & Company Ltd (FCL) have been maintaining upward trend for sometime and today hit 5% upper circuit for second day. The shares have gained nearly 10% in two days. The current market price of the stock is Rs 766 apiece with 5% intraday rise till afternoon trade.

The stock opened at Rs 766 apiece, hit the 5% upper circuit at 766.05 apiece and intraday low at 766 apiece, respectively.
The shares of the company have been soaring ever since it declared demerger of precision tools business on September 26, 2022.

The company in its regulatory filing stated, "we wish to inform you that the Board of Directors of Forbes & Company Limited ("the Company") at their Board Meeting held on September 26, 2022 have, inter alia, approved the Scheme of Arrangement ("Scheme") between Forbes & Company Limited ("FCL" or the "Demerged Company") and Forbes Precision Tools and Machine Parts Limited ("FPTL" or the "Resulting Company") and their respective shareholders ("the Scheme") under Section 230 to 232 of the Companies Act, 2013 and other applicable provisions and the Rules framed thereunder ("the Act")".

According to reports, Forbes & Company's precision tools arm will now be known as Forbes Precision Tools and Machine Parts Limited or FPTL.

The company said in its BSE filing, four fully paid up equity shares of Rs 10 each of the resulting company (FPTL) shall be issued and allotted to the equity shareholders of the demerged company (Forbes & Co) for every one fully paid up equity share of Rs 10 each held by them in the demerged company as on the record date.

It is worth noting that FCL will not undergo any change in shareholding pattern as a consequence of the effectiveness of the Scheme of Arrangement.

FCL has come a long way since inception, diversifying into several businesses and earning international acclaim. Its strengths lie in multiple domains such as manufacturing precision tools, marking and coding solutions, industrial automation solutions, water, and air purification systems, home security solutions, payment solutions, realty, and shipping. Today, the company is present in more than
26 countries.