Tube Investments, part of the diversified business conglomerate, Murugappa Group seeks the approval of the shareholders, through postal ballot, for the investment in the shares of Shanthi Gears for an amount not exceeding Rs 500 crore, according to a BS report.
Tube Investments of India has soared ten percent to Rs 171, also its lifetime high on the Bombay Stock Exchange on back of huge volumes. A combined 692,351 shares have already changed hands on the counter so far, against average trading volumes of around 220,000 shares in past two weeK.,
The Chennai-based auto components and equipment maker rallied 17 percent in past one week, in contrast with a marginal 0.19 percent fall in benchmark Sensex, after the acquisition of a majority stake of 44.12 percent in Shanthi Gears. The company is making an open offer to acquire an additional 26 percent equity in Shanthi Gears at Rs 81 per share, noted the report.
What is more, TII will be seeking the approval of the shareholders, through postal ballot, for the investment in the shares of Shanthi Gears for an amount not exceeding Rs 500 crore, Tube Investments of India said in a filing.
According to analyst, Tube Investment’s stock looks fairly valued based on FY13 estimated earnings. However, based on FY14 estimates, which will be the first full year of consolidated operations and reflect synergies, valuations are cheap, added the report.