Tube Investments of India rose 1.49% to Rs 597.10 at 11:05 IST on BSE after the company entered into joint venture agreement with Absolute Speciality Foods Chennai to open bicycle cafes in India.
The announcement was made after market hours yesterday, 15 September 2016.Meanwhile, the BSE Sensex was up 344.17 points, or 1.21%, to 28,757.06.
On BSE, so far 3,411 shares were traded in the counter, compared with an average volume of 43,429 shares in the past one quarter. The stock hit a high of Rs 604.95 so far during the day, which is a record high for the stock. The stock hit a low of Rs 593.90 so far during the day. The stock hit a 52-week low of Rs 352 on 25 February 2016. The stock had outperformed the market over the past one month till 15 September 2016, rising 4.35% compared with 0.93% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 30.57% as against Sensex's 6.31% rise.
The large-cap company has an equity capital of Rs 37.47 crore. Face value per share is Rs 2.
Tube Investments of India (TIIL) announced that it has entered into a 50-50 joint venture with Chennai based Absolute Speciality Foods Chennai to open bicycle cafes in select locations in India, to be operated under the brand name Ciclo Caf Ciclo Cafis a popular brand name in hospitality and cycling circuits. In the present operations of the Ciclo Cafoutlet in Chennai, TII owns and operates the bicycles business and Absolute Speciality owns and operates the caffoods and beverages (F&B) business. This would also become part of the joint venture company. Under the joint venture agreement, Ciclo Cafbrand is now slated for expansion into two other metros namely, Gurgaon and Hyderabad by the year ending 31 March 2017 (FY 2017) and will look for opportunities to open in other cities.
A new 50-50 JV company namely, TI Absolute Concepts has been formed by the two partners. The board of directors of TII approved investment by the company of a sum not exceeding Rs 10 crore in one or more tranches, in the equity share capital of the JV company. The proposed initial investment will be of the order of Rs 15 crore contributed equally by the two JV partners. The existing restaurant business of Absolute will be transferred to the JV company and the bicycle theme restaurant will be operated under the brand name Ciclo Caf The JV company will have a total of 4 board of directors, with each JV partner nominating 2 directors each.
Tube Investments of India's net profit rose 135.4% to Rs 42.40 crore on 6.7% rise in net sales to Rs 1023.95 crore in Q1 June 2016 over Q1 June 2015.
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. Its unit TI Cycles is a leading bicycle maker in India.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
