Shares of IPCL today hit 52 week high of Rs 109.80 boosted by news that today is the last day for submission of bids for the government's 26 per cent stake in the company. The stock closed at Rs 105.65, up 4.34 per cent amid a volume of 29.17 lakh shares.
In seven trading sessions, the IPCL stock rose 11 per cent to Rs 101.60 on 26 April 2002 from Rs 91.60 on 17 April 2002. IPCL has been propelled higher by the prospect that the bidders may offer a higher price for the government's stake than earlier proposed. There are three bidders in the fray for IPCL - largest private sector company Reliance Industries, state-run oil refining giant Indian Oil Corporation (IOC) and detergents maker Nirma.
Earlier, there were talks that IOC would offer Rs 155 a share for IPCL, a premium of 44 per cent to the its current trading price.
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Meanwhile, Reliance Industries seeks to buffet its already leadership position in the petrochemicals sector with this acquisition and Nirma wants IPCL for synergies with its core business.
There also are reports that Gas Authority of India (Gail) may team up with IOC for acquiring a stake in IPCL. Earlier, there were reports that Oil and Natural Gas Corporation (ONGC) would tie up with IOC for acquiring the IPCL stake.
IPCL is a leading petrochemicals company. Its business comprises polymers, synthetic fibres, fibre intermediates, solvents, surfactants, industrial chemicals, catalysts and absorbents.
Backed by a strong research centre, product application centres and technology management centres, the company is continuously innovating its processes and products. The Centre holds a 59.75 per cent stake in IPCL.
For the third quarter ended 31 December 2001, IPCL posted a 17.05 per cent decline in net profit to Rs 19.22 crore compared with Rs 23.17 crore in the corresponding period last year. Net sales dropped by 8.13 per cent to Rs 1,072.73 crore from Rs 1,167.77 crore in DQ 2000. Other income stood at Rs 27.39 crore in DQ 2001 compared to Rs 30.05 crore in DQ 2000.