Tube Investments of India has soared 10% 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 weeks.
A Murugappa Group, auto parts and equipment maker rallied 17% in past one week, as compared to a marginal 0.19% fall in benchmark Sensex, after the acquisition of a majority stake of 44.12% in Shanthi Gears. The company is making an open offer to acquire an additional 26% equity in Shanthi Gears at Rs 81 per share.
“The company 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.