Now Reading: Tube Investments raises Shanthi Gears stake to 73% in ₹77.49 crore block deal
-
01
Tube Investments raises Shanthi Gears stake to 73% in ₹77.49 crore block deal
Tube Investments raises Shanthi Gears stake to 73% in ₹77.49 crore block deal
Tube Investments of India (TII) has acquired an additional 2.69% stake in Shanthi Gears Limited (SGL) through a block deal, increasing its holding from 70.46% to 73.16%. TII bought 20,64,713 equity shares…
Tube Investments of India (TII) has acquired an additional 2.69% stake in Shanthi Gears Limited (SGL) through a block deal, increasing its holding from 70.46% to 73.16%. TII bought 20,64,713 equity shares at a face value of Re. 1 each in an all-cash transaction valued at approximately ₹77.49 crore.
The acquisition, completed on August 21, 2026, received board approval and was described by TII as part of its long-term investment plans. Shanthi Gears, a Chennai-based gear manufacturer founded in 1972, reported a turnover of ₹518.72 crore for FY 2025-26, down from the previous year's ₹604.62 crore.
TII shares traded at ₹2,889 on the NSE on Friday, down 1.40% from the previous close. The stock has gained 10.11% year-to-date but declined 6.76% over the past year. TII is a Nifty Midcap 50 constituent in the auto components and equipment sector.
Indian Opinion Analysis
The ₹77.49 crore acquisition brings Tube Investments' holding to just under the 75% threshold that would trigger mandatory open offer rules under SEBI regulations. With Shanthi Gears' turnover dropping nearly 14% year-on-year to ₹518.72 crore, TII appears to be consolidating its grip on a subsidiary facing a revenue squeeze rather than signalling an imminent delisting. The next move to watch is whether TII crosses the 75% mark in a subsequent tranche, which would require an open offer at the block deal price or above.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
