Ispat Industries plummetted by over 17 per cent in early trade on the Bombay Stock Exchange today after JSW Steel announced that it will acquire a majority stake in the company through the purchase of shares worth Rs 2,157 crore, allotted on a preferential basis.
"The company will subscribe to 10,866,49,874 equity shares of Ispat by way of preferential allotment at a price of Rs 19.85 per piece," JSW Steel said in a filing to the Bombay Stock Exchange.
Nervous investors abandoned the counter following the announcement and the scrip plunged 17.42 per cent to touch an early low of Rs 20.65 on the BSE.
On a similar note, Ispat tumbled 17.6 per cent to an early low of Rs 20.60 on the National Stock Exchange.
In the previous trading session, the scrip had gained over 10 per cent.
Meanwhile, JSW Steel surged by 4.59 per cent to touch an early high of Rs 1,240 on the BSE.
The BSE 30-share barometer Sensex was trading at 20,039.24, up 150.36 points, at 1023 hours.
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