Tube Investments of India rose 12% to Rs 448.10 at 11:02 IST on BSE after the company said it will sell 14% of Cholamandalam MS General Insurance to its joint venture partner Mitsui Sumitomo Insurance Company of Japan for Rs 882.67 crore.
The announcement was made on Friday, 25 December 2015.
Meanwhile, the BSE Sensex was up 131.90 points, or 0.51%, to 25,970.61.
On BSE, so far 1.05 lakh shares were traded in the counter, compared with an average volume of 12,710 shares in the past one quarter.
The stock hit a high of Rs 467 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 431 so far during the day. The stock hit a 52-week low of Rs 321.50 on 3 June 2015.
The stock had outperformed the market over the past one month till 24 December 2015, rising 0.84% compared with 0.24% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 0.19% as against Sensex's 0.10% decline.
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The mid-cap company has an equity capital of Rs 37.46 crore. Face value per share is Rs 2.
Tube Investments of India said that its board of directors approved the divestment of 4.18 crore equity shares held by the company in its general insurance subsidiary viz., Cholamandalam MS General Insurance Company, constituting 14% of the equity share capital of Cholamandalam MS General Insurance Company, to its joint venture partner Mitsui Sumitomo Insurance Company, Japan (MSI). The shares will be sold at a price of Rs 211 per equity share, aggregating to a total consideration of Rs 882.67 crore.
On completion of the deal, Mitsui Sumitomo will increase its ownership in Cholamandalam MS General Insurance Company to 40% from 26% currently. Cholamandalam MS General Insurance Company is a general insurance company in India offering health insurance, car insurance, travel insurance, home & accident insurance policies for individuals and corporates.
On a consolidated basis, Tube Investments of India's net profit rose 6.72% to Rs 106.91 crore on 10.01% decline in net sales to Rs 2107.86 crore in Q2 September 2015 over Q2 September 2014.
Tube Investments of India is primarily engaged in the production of steel tubes, cold rolled steel strips and metal sections, as well as bicycles and all critical bicycle components.
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