Shares of Tube Investments hit their new 52-week high on Monday after the Chennai-based company informed stock exchanges on Friday that it will sell 14 per cent of its stake in Cholamandalam MS General Insurance to its joint venture partner Mitsui Sumitomo Insurance Company of Japan for Rs 882.67 crore. The company’s board has approved the stake sale.
The share price of Tube Investments closed 11.62 per cent up at Rs 446.60. It also hit a fresh 52-week high of Rs 467 on Monday.
On completion of the deal, Mitsui Sumitomo will increase its ownership in Chola MS to 40 per cent from 26 per cent. Cholamandalam MS offers products that include accident, engineering, health, liability, marine, motor, property, travel and rural insurance for individuals and corporates.
The promoters holding in the company stood at 48.84 per cent while institutions and non-institutions held 25.71 per cent and 25.45 per cent respectively.
Tube Investments of India is the flagship company of the Murugappa Group with multiple businesses ranging from diversified auto-ancillary products, bicycle retailing to financial services and insurance.