Patel Engineering Shares At Three-Week High On Plan To Buy Stake In Tunnelling Startup
The transaction is likely to be completed on or before June 30.
Shares of Patel Engineering Ltd. surged over 12% to their highest level in three weeks on Tuesday after it announced it would acquire stakes in Shail Tunnelling and Infra Pvt.
The company plans to buy 10% stakes in the tunnel boring supplier startup that provides consultancy services in design and engineering, including providing equipment for tunnels and other infrastructure projects, according to an exchange filing.
The transaction is likely to be completed on or before June 30.
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Shares of the company rose as much as 12.46% to Rs 65.90, the highest level since April 25. It pared gains to trade 8.70%
The stock gained 153.28% in last 12 months and 5.82% so far this year. The total traded volume so far in the day stood at 8.3 times its 30-day average. The relative strength index was at 62.23.
One analysts tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 26.0%.
