ICICI Prudential Mutual Fund offloads 11,000 MM Forgings shares

CHENNAI: ICICI Prudential Mutual Fund has offloaded nearly 11,000 shares of Chennai-based industrial forging company MM Forgings.

In a stock market announcement, MM Forgings has announced that ICICI Prudential Mutual Fund, which held 7.53% stake in the company, with 920,709 shares, sold 10,837 equity shares of Rs 10 each or 0.09% of the equity share capital of the company.

The deal, worth around Rs 1.19 crore, was a secondary market one and was closed on March 20. The company was intimated on March 24.

ICICI Prudential Mutual Fund now holds 509,872 shares in MM Forgings of Rs 10 each which works out to just over 7% stake. The deal was done through Goldman Sachs at the NSE, according to the stock market statement. MM Forging share lost 1.25% to close at Rs 107.

MM Forgings is a forging company with a particular focus on the global commercial vehicle market. It has a strong export presence in markets in the US and Europe. With the US economy now rebounding, vehicle sales are picking up.

Analysts say the depreciation of the rupee against the dollar and euro has made the company’s exports extremely cost competitive, particularly since rival firms from China have had to battle an appreciating yuan which went up nearly 3% vis-a-vis the dollar in the past 12 months. As a result, MM Forging has seen its export share of the total revenue go up from 57% to over 70% between 2008 and 2013….

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