Era Constructions may raise open offer price

Shares of Era Constructions India today surged over 18.5 per cent on talk that its promoters may raise the open offer price.

The stock moved further up when NewsWire18 reported that the company may have to raise the price, quoting Chairman and Managing Director H S Bharana.

"At the moment, we cannot say anything. But fundamentally, if it (share price) continues to remain strong, we will have to raise the open offer price," Bharana told NewsWire18. The price of the open offer has been set at Rs 615, way below the current share price of Rs 852.

Era Constructions shares closed at Rs 866.30, up 19.65 cent from close Wednesday.

Currently, promoters hold a little over 26 per cent in the company and plan to raise the stake by buying 20 per cent more from the public through an open offer. Promoters have raised their stake in the company by about 6 per cent, mainly through creeping acquisition since end-June.

Analysts said the promoters' holding in the company is too little for comfort and they can go some distance to raise their stake.

"We are ready to launch the open offer as soon as we get the regulator's permission," Bharana said.