TVS Motor Shares Hit Record After Buying Stake In India Foundation For Quality Management
IFQM was incorporated in September with an aim to improve the quality of Indian products and services to boost exports.
Shares of TVS Motor Co. jumped over 4% to an all-time high on Friday after it acquired a 28.57% stake in India Foundation for Quality Management for Rs 25 crore.
IFQM will complete the allotment of the shares to the two-wheeler maker on or before April, according to an exchange filing on Thursday.
The acquisition is a related-party transaction since TVS Motor Chairman Emeritus Venu Srinivasan is also a director of IFQM, which was incorporated in September with an aim to improve the quality of Indian products and services to boost exports.
TVS Motor's stock rose as much as 4.44% during the day to Rs 2,186 apiece on the NSE. It was trading 4.06% higher at Rs 2,177.90 per share, compared to a 0.45% advance in the benchmark Nifty 50 at 10 a.m.
The share price has risen 92.94% in the last 12 months. The total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 70.97, implying that the stock is slightly overbought.
Out of 42 analysts tracking TVS Motor, 21 have a 'buy' rating on the stock, 12 recommend a 'hold' and nine suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 5%.
