The announcement was made after market hours on Wednesday, 28 September 2011.

Meanwhile, the BSE Sensex was down 58.66 points, or 0.36%, to 16,387.36.

On BSE, 2,665 shares were traded in the counter compared with average volume of 519 shares over the past two weeks.

The stock hit a high of Rs 215.05 and a low of Rs 207.55 so far during the day.

SasMos HET Technologies, a Bengaluru-based leading manufacturer of products such as cable assemblies, wiring harness, panel boxes, and electro-mechanical assemblies used in aerospace and defence industry, has been in the lookout for a suitable partner to expand its business, Rane said in a statement. Rane Holdings said it has an option to acquire a majority stake in SasMos over a period of time.

As a part of its growth strategy, Rane said the group has been exploring opportunities to go beyond its current presence in automotive industry. It has been scouting for opportunities to grow and identified defence and aero space industry as a possible area after the Indian government's decision to allow private participation in these sectors.

SasMos, is an eligible offset partner for supplies to the Indian defence sector and also supplies interconnection systems (cable harnesses) to both domestic and overseas customers. SasMos HET Technologies has significant plans to scale up and is expected to grow to about Rs 120 crore in revenue in the next five years, Rane added.

"Today is a momentous step forward as Rane ventures into this new area. We feel there are significant growth opportunities both in India and as an exporter. This entry also opens a new knowledge base for Rane in electronics which will have a synergy with automotive Industry," said L Ganesh, Chairman, Rane Group.

On a consolidated basis, Rane Holdings' net profit rose 2.6% to Rs 12.27 crore on 16.7% increase in net sales to Rs 404.34 crore in Q1 June 2011 over Q1 June 2010.

Rane Holdings (RHL) is the holding company of the Rane Group. The company has investments exclusively in the group firms. The conclusion of the restructuring exercise within the group has achieved complete elimination of cross-holdings among group companies. RHL provides a range of services to group companies. These include employee training and development, investor services, business development and Information systems support.