Craftsman Automation shares rise 12%, approach 52-week high; here's why 

Shares of Craftsman Automation rose over 12% early deals on Tuesday after the firm said  it has inked a memorandum of understanding with Sunbeam Lightweighting Solutions and Kedaara Capital Fund II LLP for acquiring the whole or part of the business of Sunbeam (excluding certain specific assets of Sunbeam situated in Gurugram) in one or more tranches. 

Craftsman Automation stock surged 12.54% to Rs 5441.40 against the previous close of Rs 4835 on BSE. Total 0.31 lakh shares of the firm changed hands amounting to a turnover of Rs 16.51 crore. Market cap of the firm rose to Rs 11,331 crore on BSE.

The stock has risen 35.30% in the last one year. It is trading flat on a year-to-date basis. 

Craftsman Automation shares have a beta of 0.5, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 69.7, signaling it's trading neither in the overbought nor in the oversold zone. Craftsman Automation stock is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

"Completion of the proposed transaction remains subject to inter alia, completion of due diligence, final approval of the Board of Directors of the Company, execution of definitive documents, and completion of other customary conditions as may be required under law," said the firm in a communication to bourses. 

Craftsman Automation is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely automotive-powertrain and others, automotive-aluminum products, and industrial and engineering.