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Shares of Modi Rubber Ltd today rose by 5 per cent in early morning trade on the back of sale of a tyre business subsidiary to Germany’s Continental Group.
The shares rose by 5 per cent to hit its highest permissible limit for the day at Rs 63.20 at BSE.
The company announced on Friday that it has completed the sale of its entire shareholding in Modi Tyres Company Ltd to Continental Group.
It had announced definitive agreements for the sale in April. Modi Rubber said that its entire shareholding of 56,046,680 equity shares of Modi Tyres has been now sold to Continental for about Rs 117.6 crore, while the company has also received a non-compete fee of about Rs 17.2 crore.
Consequent to the sale, Modi Tyres Company has become a wholly owned subsidiary of the Continental Group, it added.
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