Shares of Tube Investments of India Limited jumped over 4 percent in the early trading session on Friday, November 25 after the company reported plans to acquire a 50 percent stake in X2Fuels and Energy, an early-stage start-up incubated at the National Centre for Combustion Research and Development (NCCRD) at IIT Madras.
Through an official filing, the company disclosed that it had signed a shareholders' agreement and a shares' subscription agreement with X2Fuels for the subscription of 10,753 shares, which represent X2Fuels' 50% stake and will be issued to TI India for a total consideration that may not exceed ₹6.15 crore.
During Friday’s trade, the stock opened at a price of Rs. 2,619.70 per share against the previous close of Rs. 2,602.35 on the NSE and surged further to touch an intraday high of Rs. 2,725. It was trading at Rs. 2,683, up by 3.10 percent at 10:40 a.m., on the NSE.
The stock touched a 52-week-high of Rs. 2,969.85 on November 7, 2022 and a 52-week-low of Rs. 1,441.95 on March 9, 2022, indicating that at the current levels, the stock is trading almost 86 percent above its 52-week low and just 9.6 percent below its 52 week high.
The stock has returned nearly 73 percent to its shareholders in the past six months. Moreover, the stock has shown a growth of 42 percent year-to-date. In the last five years, the shares of the company have grown by over 950 percent.
Tube Investments of India (TII), a Murugappa Group entity, will complete the transaction by subscribing to 10,753 equity shares for a total value of ₹6.15 crore.
X2Fuels and Energy endeavors to develop and deploy thermochemical technologies for the conversion of any solid feedstock such as lignocellulosic agri-residues, plastics, bio-organic wastes and municipal solid wastes into storable liquid and solid fuels, which can potentially be integrated within a refinery infrastructure.
The acquisition of 50 percent equity stake in X2Fuels will strengthen TII’s efforts to make a positive impact in environment sustainability through development of advanced technologies in managing waste and also benefit to achieve circular economy, said the Executive Chairman of the company.
The firm recorded a consolidated total income of ₹3,812.94 crore for the quarter that ended September 30, 2022, up 15.96% from the same quarter last year and down 0.26% from the previous quarter's total income of ₹3,822.83 crore. In the most recent quarter, the company generated net profit after tax of ₹280.57 crore.
Tube Investments of India Ltd., established in 2008, is a mid-cap company with a market capitalization of Rs. 50,222.90 crores functioning in the consumer durables industry. It is an India-based company engaged in manufacturing a range of precision-engineered and metal-formed products.
According to a Mintgenie poll, an average of 6 analysts have a ‘HOLD’ call on the stock.
