Tube Investment shares rise 5% as it picks 50% stake in start-up

Shares of auto ancillary company Tube Investment of India (TII) rallied nearly 5% to Rs 2,725 in Friday's intraday trade after the company informed that it has signed a share subscription agreement and a shareholder agreement with X2Fuels to acquire a 50% stake in the company.

TII signed a share subscription agreement and a shareholder agreement with X2Fuels for the subscription of 10,753 shares, which is to be issued to TII for an aggregate consideration not exceeding Rs 6.15 crore, the company said in a BSE filing.

X2Fuels is a start-up company engaged in developing processes to convert waste to liquid/solid fuels.

"The company has identified an investment opportunity in X2Fuels and Energy Private Limited. X2Fuels is an early-stage start-up incubated at the National Centre for Combustion Research and Development (NCCRD) at IIT Madras. It was awarded the 3rd prize in the New Generation Ideation Contest conducted by HPCL Green R&D Centre in 2020,” the company said.

“The acquisition of 50% equity stake in X2Fuels will strengthen TII’s efforts to make a positive impact in environment sustainability through the development of advanced technologies in managing waste and also benefit to achieve a circular economy,” M.A.M Arunachalam, Executive Chairman, TII, said.

At 11.15 am, the scrip was trading 1.8% higher at Rs 2,649 over its previous day’s closing price of Rs 2,602 apiece. Also, the stock has risen over 70% in the last six months.