Tube Investments Increases Stake in Shanthi Gears to 73.16 Percent

CHENNAI, India — Tube Investments of India Limited (TII) has expanded its majority holding in its listed subsidiary, Shanthi Gears Limited (SGL), through an equity purchase valued at approximately 774.9 million rupees (₹77.49 crore). According to statutory stock exchange disclosures released on Friday, August 21, 2026, the Chennai-headquartered engineering company acquired 20,64,713 equity shares, representing 2.69% of Shanthi Gears' paid-up share capital, via a block deal transaction.

The acquisition increases TII's total shareholding in the industrial gear manufacturer from 70.46% to 73.16%. The board of directors of Tube Investments approved the strategic transaction during a meeting held earlier in the day, reinforcing its long-term investment focus in the industrial manufacturing sector.

Details of the Block Deal and Financial Impact

The transaction was completed on August 21, 2026, on the stock exchange through an all-cash block deal. TII acquired the shares—having a face value of Re 1 each—at an aggregate cost of approximately ₹77.49 crore.

Tube Investments clarified in regulatory submissions that the transaction was executed through public market mechanisms and does not fall under related party transaction rules. No prior regulatory or governmental approvals were required to execute the share purchase.

Shanthi Gears Limited, incorporated in July 1972 and based in Coimbatore, specializes in designing, manufacturing, refurbishing, and repairing gears, gearboxes, geared motors, and gear assemblies. For the fiscal year ending March 31, 2026, Shanthi Gears reported an annual turnover of ₹518.72 crore, following revenues of ₹604.62 crore in FY25 and ₹536.05 crore in FY24.

Corporate Background and Strategic Context

Part of the Murugappa Group, Tube Investments of India operates across engineering, metal formed products, bicycles, and mobility solutions. Consolidated subsidiary Shanthi Gears provides heavy industrial gear systems across power, steel, sugar, defense, and infrastructure verticals.

By boosting its ownership stake to 73.16%, TII consolidates operational control over Shanthi Gears while remaining within the regulatory ceiling of 75% maximum promoter holding mandated by Indian capital market rules.

For equity investors and capital market analysts, the additional capital deployment signals TII's commitment to expanding its industrial engineering portfolio amid growing national infrastructure and capital goods demand.

Official Sources Section

According to official regulatory filings submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Tube Investments of India Limited formally notified BSE Limited (Scrip Code: 540762) and the National Stock Exchange of India Ltd (Symbol: TIINDIA) on August 21, 2026. The compliance statement was signed by S. Krithika, Company Secretary for Tube Investments.

Quote Section

According to officials at Tube Investments of India Limited:

"Pursuant to the approval accorded by the Board of Directors of the Company at its meeting held today (21st August 2026), the Company has acquired 20,64,713 equity shares of face value of Re. 1 each of Shanthi Gears Limited... as part of the long-term investment plans of TII."

Company Secretary S. Krithika confirmed in the statutory disclosure that the acquisition was executed on the stock exchange via an all-cash block deal.

Why It Matters

The acquisition strengthens Tube Investments' parent control over Shanthi Gears, providing greater strategic alignment across its engineering subsidiaries. For minority shareholders of Shanthi Gears, the block deal demonstrates ongoing promoter confidence and backing from the Murugappa Group. The increased holding also positions TII to capture a larger share of dividend payouts and financial earnings from Shanthi Gears' gear manufacturing operations.

Key Facts at a Glance

• Transaction Cost: Approximately 774.9 million rupees (₹77.49 crore) in an all-cash consideration.

• Shareholding Increase: TII's stake in Shanthi Gears rises from 70.46% to 73.16%.

• Volume Acquired: 20,64,713 equity shares representing 2.69% of SGL's paid-up equity share capital.

• Execution Mode: Stock exchange block deal completed on August 21, 2026.

• Target Turnover: Shanthi Gears recorded ₹518.72 crore turnover in FY 2025–26.

Frequently Asked Questions

What percentage stake did Tube Investments acquire in Shanthi Gears?

Tube Investments acquired an additional 2.69% stake (20,64,713 equity shares), raising its total shareholding in Shanthi Gears to 73.16%.

What was the total cost of the share acquisition?

The total acquisition cost was approximately 774.9 million rupees (₹77.49 crore), executed via an all-cash deal.

How was the transaction carried out on the stock exchanges?

The transaction was executed on August 21, 2026, through a block deal on the stock exchange following board approval from Tube Investments.

What business does Shanthi Gears Limited operate?

Shanthi Gears Limited designs, manufactures, refurbishes, and repairs industrial gears, gearboxes, geared motors, and gear assemblies.

Source: Official disclosures filed with BSE Limited and the National Stock Exchange of India Ltd by Tube Investments of India Limited.