Shares of Varroc Engineering surged over 8% on Wednesday to hit a new 52-week high of ₹515.20.

What Happened: The surge comes today as the company entered into an agreement with its subsidiary, Varroc Polymers, to sell its plant and machinery located at the company's plant in Tamil Nadu. The transactions are expected to close out by September end.

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The company further said that the transaction would be done as per prevailing market rates on mutually agreed terms and conditions. The amount involved for the said transactions is not exceeding ₹50 crore, the company added in an exchange filing.

The announcement helped the stock continue making gains for the fifth straight session. In the past month, the Varroc share price has gone up close to 30%. Nippon India Focused Equity Fund owns a 4.60% stake in the company which is worth around ₹345 crore. HDFC Flexi Cap Fund also owns a 3.71% stake in the company.

Price Action: Varroc’s share price was up 5.18% to trade at ₹497.65 in the early hours of trading on Wednesday.

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