Shanthi Gears shares surge 37% in two trading sessions. Here's why

Shanthi Gears shares extended their sharp rally on Monday, surging 14.59% to Rs 532 on the National Stock Exchange (NSE).

The stock has now gained 37.5% over two trading sessions, following a 19.99% jump on Friday and another strong advance on Monday.

The latest rally was fuelled by Tube Investments acquiring an additional stake in Shanthi Gears through a block deal, signalling continued confidence in its subsidiary. Shanthi Gears is a subsidiary of Tube Investments of India, which itself operates under the Chennai-based Murugappa Group.


Tube Investments raises stake

The Chennai-based company bought 20,64,713 equity shares, representing 2.69% of Shanthi Gears’ paid-up share capital. Following the purchase, its stake in the company increased to 73.16% from 70.46%.

The shares were acquired through an all-cash block deal for about Rs 77.49 crore. Tube Investments said the transaction was part of its long-term investment plans.

The promoter’s move to increase its holding appears to have encouraged investors, particularly as the purchase was made directly through the stock exchange. The transaction was not classified as a related-party transaction, and no government or regulatory approvals were required.

Shanthi Gears’ business

Shanthi Gears designs and manufactures gears, gearboxes, geared motors and gear assemblies. It also provides gearbox refurbishment and repair services.

The company reported turnover of Rs 518.72 crore in FY26, compared with Rs 604.62 crore in FY25 and Rs 536.05 crore in FY24. Its issued and paid-up share capital stood at Rs 7.67 crore.

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