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Shares of Force Motors jumped 20 per cent to hit the upper circuit limit in early trade on the BSE today after the company said it will “almost exit” its joint venture with MAN Truck & Bus AG by selling 5.58 lakh shares to its German partner for €150 million (over Rs 1,050 crore).
Reacting to the move, the company’s scrip climbed 20 per cent to the highest permissible limit of Rs 605.15 for the day within seconds of the opening bell on the BSE.
A circuit filter on the stock does not allow any movement beyond this level in a single day.
In 2006, Pune-based Force Motors and MAN Truck & Bus had formed a joint venture — MAN FORCE Trucks Pvt Ltd (MFTPL) — to produce heavy commercial vehicles.
At the time of formation of the joint venture, the Indian firm was the majority partner with an 80 per cent stake. The company became a 50:50 partnership in 2008.
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