Shares of this bearing company rise over 1 per cent after forming a new wholly-owned subsidiary

This small-cap company from the auto ancillaries space is trading in the green after announcing new business developments.

Shares of Menon Bearings Limited are up by 1.02 per cent from its previous day's close price as management informed the exchange about the recent development.

Management informed that the company has established a wholly owned subsidiary, 'Menon Brakes,' as a Private Limited Company on December 12, 2022. The 'Menon Brakes' is being formed to carry on the business of designing, manufacturing, dealing, trading, importing, exporting, stockists, buying and selling, brake linings, brake shoes and their accessories, rivets, riveted shoes, clutch, clutch tools, clutch facing, axels, brake pads and brake discs, brake rotors, brake lines, brake kits, racing brake fluid, all types of brakes, brake system components, etc. in India. The company has subscribed for 8,25,000 equity shares at Rs 10 each, totalling Rs 8.25 crore.

Menon Bearings is engaged in the business of Bearings, Bushes and Thrust Washers, and Aluminium Die Casting Components having applications in Heavy & Light commercial vehicles, Tractors, Construction equipment, Material handling, Stationery, Diesel, Gasoline and CNG engines.

The promoters holding in the company stood at 71.25 per cent, while institutions and non-institutions held 1.85 per cent and 26.90 per cent, respectively. The 52-week high of the stock is Rs 124.85 whereas the 52-week low is Rs 67.10.

At the time of writing, shares of Menon Bearings Limited were trading at Rs 94.45 a piece.