TVS Motor shares scale all-time high — here's what's driving the stock

TVS Motor Company shares climbed to an all-time high on Monday, after the auto maker announced the acquisition of the remaining 25 per cent stake in Swiss e-bike platform SEMG through its subsidiary, TVS Motor Singapore. TVS Motor shares — traded on the bourses with the symbol TVSMOTOR — gained by as much as Rs 47.3 or 3.5 per cent to a record high of Rs 1,384.6, surpassing its previous high of Rs 1,354.7 (June 7). 

After the transaction, estimated to be worth Rs 180 crore, SEMG will become a wholly-owned subsidiary of TVS Motor Singapore.  

In a separate development, TVS Motor Company's board gave nod to a share subscription agreement with TVS Credit Services and PI Opportunities Fund-I Scheme-II. As part of the deal, PI will invest Rs 480 crore in TVS Motor Company subsidiary TVS Credit Services.

After the completion of the transaction, PI will hold about 9.72 per cent in TVS Credit on a fully diluted basis, according to a regulatory filing. 

What analysts say on TVS Motor Company

Macquarie maintained an 'outperform' rating on TVS Motor with a price target of Rs 1,418 apiece — implying a potential upside of six per cent from Friday's closing price.  

The brokerage pointed out that the fund-raise by TVS Credit, is at a marginal premium to the market price, valuing the TVS Motor Company credit subsidiary at Rs 96 per share as against its current value at Rs 85 per share. 

Zee Business Analyst Varun Dubey has a 'buy' call on TVS Motor from a fundamental perspective. He has placed a price target of Rs 1,390 and recommends a stop loss at Rs 1,310. 

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