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Zuari Agro surges on plan to divest stake in MCF: report

The stock has soared 10% to Rs 166, extending its previous day's 5% rally on the BSE.

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SI Reporter Mumbai
Last Updated : Jan 07 2014 | 10:46 AM IST
Zuari Agro Chemicals has soared 10% to Rs 166, extending its previous day’s 5% rally, on reports that Zuari Fertilisers & Chemicals is planning to divest its entire stake in Mangalore Chemicals and Fertilizers (MCF).

Zuari Fertilisers & Chemicals is a wholly-owned subsidiary of Zuari Agro Chemicals held 16.43% stake in MCF. Zuari acquired the stake at little over Rs 40 a share against the current market price of around Rs 60 a share.

“Zuari Fertilisers & Chemicals is keen to sell its 16.43% stake in MCF by February, which may lead to Deepak Fertilisers and Petrochemicals Corp, another stakeholder in the company, taking over the firm from Vijay Mallya’s UB Group,” the Business Line report suggests.

Shares of Zuari Agro Chemicals has opened at Rs 155 and touched a high of Rs 174 on the BSE. A combined 109,000 shares have changed hands on the counter so far on the BSE and NSE.
 

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First Published: Jan 07 2014 | 10:35 AM IST

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