TRF, a Tata company yesterday sought approval from its shareholders for divestment from its JV. It is seeking to sell the entire stake held by Dutch Lanka Trailer Manufacturers (DLT) (a step down wholly owned subsidiary of the company), in Tata International DLT (TIDLT), a 50:50 JV of Tata International (TIL) and Dutch Lanka Trailer Manufacturers.
Four days ago, DLT executed a share purchase agreement to divest its entire stake held in TIDLT to TIL. This is to fetch Rs.24.50 crore for DLT.
More than 30,000 trailers running in India are supplied by Tata DLT. DLTM sells in both the Sri Lanka market as well as exports to Asia, the Middle East and Africa and specializes in road and port trailers. TRF Ltd is a supplier of bulk material handling equipment.
Following this news, the stock price, which had closed yesterday at Rs.79.85, opened today at Rs.82.95 and soon hit the 5% UC of the day at Rs.83.80. Volumes are up over 3-times.