Tube Investments rises 7% on acquiring 67% stake in Kcaltech for Rs 62 cr

Tube Investments' share price rose 7 per cent on BSE in Thursday's trade and logged an intraday high of Rs 3,630 per share. The stock was in demand after the company announced to acquire 67 per cent equity share capital of Kcaltech System India. The transaction is worth around Rs 62 crore.

 

Around 12:46 PM, Tube Investment shares were up 6.69 per cent at Rs 3615.9 per share on BSE. In comparison, the BSE Sensex was down 1.10 per cent at 79,349.33. The market capitalisation of the company stood at Rs 69,656.08 crore. The 52-week high of the stock stood at Rs 4,807.05 per share and the 52-week low was at Rs 3,258.95 per share. 

 

 

"M/s. Tube Investments of India Limited has today (November 27, 2024) entered into a share subscription cum shareholders' agreement for the acquisition of 67 per cent of the equity share capital of M/s. Kcaltech System India Private Limited ('Kcaltech") by way of subscription to fresh equity shares for a consideration of about Rs 62 crore," the filing read. 

 

Tube Investments proposes to acquire 2,24,08,313 equity shares of Kcaltech representing 67 per cent of its equity share capital.

 

Further, Tube Investments is looking at opportunities for its growth as part of its long term strategy and has identified aluminium tube manufacturing as a business opportunity with potential in both auto and non-auto industries.

 

The acquisition is expected to be completed on or before January 31, 2025, subject to satisfactory completion of the conditions precedent as contained in the Share Subscription and Shareholders' Agreement executed between the parties.

 

Kcaltech System India Private Limited is a company engaged in the business of manufacturing aluminum tubes and parts used in HVAC applications in the automobile segment. Kcaltech was originally established as Kcaltech System India LLP ("Kcaltech LLP'), a Limited Liability Partnership, and was converted into a private limited company on October 30, 2024.

 

Tube Investments of India is a leading Indian multinational company, part of the Cholamandalam Group. Founded in 1954, it is based in Chennai, Tamil Nadu. The company is primarily involved in the manufacturing of steel tubes, bicycles, automotive parts, and financial services. Tube Investments is one of India's largest manufacturers of steel tubes and cold-drawn products, and it supplies these products to industries such as automotive, construction, engineering, and consumer goods. The company also produces bicycles under the well-known BSA and Hercules brands, making it a prominent player in the Indian bicycle market. 

 

In the past one year, Tube Investments shares have lost 0.94 per cent against Sensex's rise of 21 per cent.