Shares of Inox Leisure today climbed 17 per cent in the early trade on Bombay Stock Exchange amid reports that Reliance MediaWorks has bought about 32 per cent stake in the multiplex operator Fame India.
Both Reliance MediaWorks and Inox Leisure had announced their open offers last month to wrest control of the multiplex operator.
Inox shares skyrocketed by 17.01 per cent to touch the monthly-high of Rs 79.10 on BSE.
"With Reliance MediaWorks hiking the stake in Fame, chances of Inox losing the takeover battle has increased which means the company's liquidity will be intact, as it will not have to raise any funds for acquiring the additional stake," said SMC Capitals equity head Jagannadham Thunuguntla.
Reliance MediaWorks also gained by 1.64 per cent to Rs 231.65 a share.
On the other hand, profit booking was seen at the Fame's counter, which tanked by 5.55 per cent to Rs 86.70 on BSE.
Fame India scrip yesterday hit its upper circuit of 20 per cent on speculations that Reliance MediaWorks, which held 12 per cent stake in the multiplex firm, had increased its shareholding to about 44 per cent.
Inox had offered Fame India shareholders an offer of Rs 51 a share, putting its offer size at nearly Rs 42 crore. However, the Anil Ambani group company made a higher offer of Rs 83.40 per share. Both offers closed on January 4 after commencing on December 16.
Meanwhile, the BSE 30-share barometer Sensex was trading at 20,167.20, down 133.9 points at 12:45 hrs.