Sona BLW Precision shares flare up

Chennai: The share price of automobile components maker Sona BLW Precision Forgings Ltd (Sona Comstar) on Friday flared up to touch a high of Rs 648 after its closing at Rs 613.25 on Thursday at the BSE.

The flare up happened after the company announced that it became the first automotive component maker to get the certification under the Auto Production Linked Incentive (PLI) scheme.

The company has filed seven applications for different products under the PLI scheme, and it has received the certification for its first product, a hub wheel drive motor for electric two-wheelers.

The company's research and development (R&D) team designed and developed the EV traction motors in-house and launched them for production in 2020.

In 2021, the government introduced the Auto PLI scheme to incentivise the domestic production of high-value advanced automotive technology vehicles and products.

The PLI scheme for the auto and auto component sector has a budgetary outlay of Rs 259 billion over five years, starting from FY 2023-24.

After touching Rs 648, the Sona Comstar scrip was changing hands for a shade below Rs 642.