Tube Investments of India Ltd Share Price – NSE /  BSE

Steel, Small Cap

Tube Investments of India has allotted 15,731 equity shares under ESOP on 10 December 2024.

With this allotment, the number of equity shares outstanding has increased from 19,34,56,447 to 19,34,72,178 and the paid up equity share capital from Rs. 19,34,56,4471- to Rs. 19,34,72,1781-.

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Tube Investments of India has allotted 5,760 equity shares under ESOP on 05 December 2024. With this allotment, the number of equity shares outstanding has increased from 19,34,50,687 to 19,34,56,447 and the paid up equity share capital from Rs. 19,34,50,687 to Rs. 19,34,56,447.

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Tube Investments of India (Tll) has announced the execution of definitive agreement for subscription of 67% equity stake in Kcaltech System India (KCAL India), a subsidiary of KC Altech Co. based in South Korea (KCAL Korea). This strategic acquisition will enable TII to strengthen its position in the growing automotive sector, particularly in the domain of aluminium tubes and parts used in Heating, Ventilation, and Air Conditioning (HVAC) systems for automobiles. The proposed investment will support KCAL India's expansion plans, including increasing its manufacturing capabilities.

The proposed acquisition aligns with TII's long-term growth strategy, as it continues to diversify into adjacent business segments that complement its core offerings. With the rising demand for automobiles in India, fuelled by increasing population, disposable income, and government initiatives, TII is targeting the aluminium tubes and parts segment as a key growth area.

KCAL India, based in Chennai, has established itself as a prominent manufacturer of aluminium tubes and parts for HVAC applications in the automobile industry. The company also trades in aluminium forged parts, such as pistons, shoes, and scrolls.

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KCAL India, a subsidiary of South Korea's KC Altech Co (KCAL Korea), specialized in the manufacturing of aluminum tubes and components used in heating, ventilation, and air conditioning (HVAC) systems within the automotive sector. For the financial year 2023-24, the company reported an audited turnover of Rs 80 crore.

This strategic acquisition will allow TII to enhance its presence in the expanding automotive sector, particularly in aluminum tube production for HVAC applications. The investment will also help KCAL India scale up its manufacturing capabilities to support its growth plans.

The company is set to acquire a 67% stake in Kcaltech System India (KCAL India) for a consideration of Rs 62 crore. As part of the transaction, the firm will subscribe to 2,24,08,313 equity shares, which will represent 67% of KCAL India's equity share capital.

The acquisition is expected to be completed on or before by 31 January 2025, subject to satisfactory completion of the conditions precedent as contained in the share subscription and shareholders agreement executed between the parties.

Mukesh Ahuja, Managing Director of TII, stated, “Through this acquisition and the planned expansion of KCAL India, we are entering the growing automobile HVAC ecosystem. This move will enable us to tap into the expanding market for aluminium components used in automobile HVAC systems, aligning our capabilities with the increasing demand for these solutions in India.”

Andrew Choi, president, KCAL Korea said, “Our collaboration with TII will provide new opportunities to KCAL India and foster mutual growth. KCAL India would immensely benefit from the industry expertise and customer relationships of TII in the automobile segment. With our experience and TII's backing, together we aim to capture the growing demand for indigenously made aluminium tubes”.

Tube Investments of India, a Murugappa Group company, is one of India's leading manufacturers of a wide range of precision engineered and metal formed products for major industries such as automotive, railway, construction, mining, agriculture, etc. The company is also a leading manufacturer of bicycles in India, with a range of iconic brands and a strong market presence.

The company reported 18.63% fall in consolidated net profit to Rs 299.77 crore despite a 14.37% increase in total income from operations to Rs 4,924.55 crore in Q2 FY25 over Q2 FY24.

The scrip slipped 1.59% to Rs 3,380.45 on the BSE.

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