Kirloskar Oil Engine at new high on buzz of stake sale to Cummins

Kirloskar Oil Engines broke into a 52-week high after a media report claimed that Cummins India would be buying a controlling stake in the company.

The Cummins Group is supposedly in talks to acquire a controlling stake in Kirloskar Oil Engines, an auto parts and equipment company. Cummins Group, one of the largest manufacturers of engines and power generation products in the world, also rose over 8 per cent, registering biggest intraday percentage gain since September 29, 2017.

Earlier in 2013, Kirloskar Oil Engines had sold its stake in diesel engine manufacturer Kirloskar-Cummins Ltd (KCL). KCL was originally set up as a JV between the Cummins Engine Co. Inc. and Kirloskar Oil Engines way back in 1962. However, the two companies decided to part ways in 2013, with Cummins India acquiring majority stake in Kirloskar Cummins.

At 14:18 hrs, Kirloskar Oil Engines was trading at a share price of Rs 413.75, up Rs 34.65, or 9.14 per cent on the NSE, whereas Cummins India was trading at Rs. 927.30 per share, up Rs. 50.15 or 5.72 per cent on the NSE.