Tube Investments of India picks up 50% stake in X2Fuels for Rs6.15 crore; stock spurts ~4%

25 Nov 2022 , 09:44 AM

Tube Investments of India Limited informed that it has signed a shares’ subscription agreement and a shareholders’ agreement with X2Fuels for the subscription of 10,753 shares of the X2Fuels to be issued to TI India for an aggregate consideration not exceeding Rs6.15 crore.

The acquisition of 10,753 shares represents a 50% shareholding in the company.

X2Fuels is a start-up company that is developing waste-to-liquid/solid-fuel conversion processes.

The proposed investment is consistent with the company’s intention to invest in start-ups conducting innovative research and product development in fields/activities of interest to the company.

“Subject to the satisfactory completion of the Conditions Precedents, the acquisition would be completed within 60 days of the execution date of the Shares’ Subscription Agreement,” said the company in an exchange filing.

In keeping with its vision, the Company has identified an opportunity to invest in X2Fuels and Energy Private Limited (X2Fuels). X2Fuels is a startup incubated at IIT Madras’ National Centre for Combustion Research and Development (NCCRD). In 2020, it won third place in the HPCL Green R&D Centre’s New Generation Ideation Contest.

At around 9.47 AM, Tube Investments of India was trading at Rs2,695.70 per piece, up by 3.59% from its previous closing of Rs2,602.25 on the BSE. The scrip opened at Rs2,634.75 and touched intraday high and low of Rs2,698.55 and Rs2,602.25 respectively.

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