Tube Investments hit a new 52-week high today at Rs.467, zooming up some 17% over previous close of Rs.400. It has come off the high but still 12% higher at Rs.447.

The company announced on 25^th that its board had approved a 14% divestment in its general insurance subsidiary viz., Cholamandalam MS General Insurance Company, to its joint venture partner Mitsui Sumitomo Insurance Company, Japan (MSI). This was done for a consideration of Rs 211 per equity share, aggregating Rs 882.67 crore.

On completion of the deal, Mitsui Sumitomo will increase its ownership in Chola MS to 40% from 26%. Cholamandalam MS is a general insurance company in India offering health insurance, car insurance, travel insurance, home & accident insurance policies for individuals and corporates.

Tube Investments said that it will be using the money raised to retire some of its debt; it currently stands at Rs.1000 crore.