The company revealed this strategic investment on Saturday (September 7), with the aim of expanding its business into the alloy steel, screws and fasteners sectors.
Chairman Devinder Garg said the move will help the company increase its presence in these industries.
On Friday (September 6), the stock closed at ₹375 with a slight drop.
BSE-listed Garg Furnace announced on September 7, 2024 that it has approved the purchase of at least 51% stake in Vanira Industries Private Limited.
Following this acquisition, Vanira Industries will become a subsidiary of Garg Furnace.
The company shared that Vanira Industries has received environmental clearance from the Central Pollution Control Board to set up manufacturing facilities for two key products – alloy steel ingots, bars, rounds and self-drilling screws.
Production of self-drilling screws is scheduled to begin in November 2024, with capacity gradually increasing.
The alloy steel production plant will start operating after June 2026.
Garg Furnace Stock Performance
The stock hit its 52-week high of ₹441 earlier this month and recorded a low of ₹133.7 on September 15 last year.
Since its low, the stock is up 182% over the past year and has returned a maximum of 230% based on its annual high.
However, shares have fallen 15% from their peak in less than a week.
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