Prakash Steelage jumps on sale of tube division to Spain's Tubacex

NEW DELHI: Prakash Steelage Ltd rose as much as 12.4 per cent in intraday trade on Tuesday, after media reports suggested that Spanish firm Tubacex has completed the acquisition of 68 per cent of the seamless stainless steel tubes division of Prakash Steelage and maintained a purchase option on the remaining 32 per cent stake.

The stock closed the day at Rs 129.50, up 7.83%, on the BSE.

The Spanish firm had in February reached an agreement with the Mumbai-based firm to buy a 68 per cent stake in the latter's seamless stainless steel tube division for about Rs 250 crore, PTI said in a report.

"We have completed acquisition of 68 per cent of the seamless stainless steel tubes division of the Prakash Steelage. With this operation, announced in February, the Spanish company also maintains a purchase option on the remaining 32 per cent," Tubacex said in a statement.

Following the recent acquisitions, Tubacex has become the leading global manufacturer of seamless stainless steel tubes. This acquisition fits perfectly into the company's strategic plan, which is currently in its growth phase in 2015 and 2016, the release said.