Tube Investments increases stake in Shanthi Gears to 73.16% following ₹77.49 crore block deal

Tube Investments of India Limited (TII) has acquired an additional 2.69 per cent stake in its listed subsidiary, Shanthi Gears Limited (SGL), through a block deal executed on the stock exchange. The all-cash transaction took place on August 21, 2026, following an approval from TII’s Board of Directors during a meeting.

Through this transaction, the Chennai-based parent company purchased 20,64,713 equity shares of SGL at a face value of Re. 1 each. The total cost of the acquisition stood at approximately ₹77.49 crore. With this purchase, TII’s total shareholding in the gear manufacturing company has increased from 70.46 per cent to 73.16 per cent.

TII has stated that the acquisition is part of its ongoing long-term investment plans. Shanthi Gears, which was incorporated on July 1, 1972, specializes in the design and manufacture of gears, gear boxes, geared motors, and gear assemblies, alongside providing refurbishing and repairing services for gear boxes. The company's issued and paid-up equity share capital is currently ₹7.67 crore.

Financial performance figures for SGL show a turnover of ₹518.72 crore for the financial year 2025-26. This reflects a decrease from the ₹604.62 crore reported in FY 2024-25, though it remains above the ₹536.05 crore recorded in FY 2023-24.

In market trading on Friday afternoon, TII shares were trading at ₹2,889 on the National Stock Exchange (NSE), marking a 1.40 per cent decline from the previous close of ₹2,930. The company commands a market capitalization of approximately ₹55,905 crore. Stock performance indicators show that TII has gained about 10.11 per cent on a year-to-date basis, despite a 6.76 per cent decline over the past year. TII operates within the auto components and equipment sector and is a constituent of the Nifty Midcap 50 index.

"This block deal highlights Tube Investments' continued strategic consolidation of its subsidiary operations. Increasing majority ownership to over 73 per cent demonstrates long-term commitment to the core manufacturing business, despite fluctuating annual turnovers. For established industrial groups, increasing stakes in profitable subsidiaries during market corrections can be a measured approach to capital allocation and asset consolidation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes