Mysore Cements scrip hits a high on tie-up buzz

INDIA INC HIGH ON MERGERS, ACQUISITIONS & ALLIANCES

For the second consecutive trading session, the Mysore Cements stock today hit the 52-week high, mirroring strong investor interest at the counter.

Stock brokers said a possible equity participation of the company with a foreign cement major was the reason for the surge in interest.

The trading at the counter today closed within minutes of the opening bell, as the scrip soared to the maximum permissible level of 5 per cent. Barely 15 minutes into the trading, the stock touched Rs 43.65 on the Bombay Stock Exchange (BSE), up 4.93 per cent from the previous close of Rs 41.60.

The combined pending buy orders at the National Stock Exchange (NSE) and BSE were nearly 6.5 lakh shares. On last Friday too, the stock closed 4.92 per cent higher at Rs 41.60.

Citigroup Global Markets Mauritius today bought 10.17 lakh shares of Mysore Cements, representing 1.16 per cent stake for a total consideration of Rs 4.43 crore. It bought 4.5 lakh shares for Rs 43.63 apiece on the BSE and 5.6 lakh shares for Rs 43.57 each on the NSE.

Stock brokers tracking Mysore Cements said the scrip, which had been at the centre of attraction for the past one month or so, rose 60.18 per cent during the period. Last week, the stock saw an upsurge of 13.67 per cent.

The brokers added that a handful of global cement companies, including an Italian and a Swiss major, have shown interest in buying out the promoters' stake in the company. A source close to Mysore Cements said international giants were keen on taking over Indian companies and Mysore Cements was no exception.

Dalal Street sources revealed that the foreign companies in talks with Mysore Cements could be Italcementi and Holcim. However, Mysore Cements denied having talks with Holcim. It could not be verified whether the company was in talks with Italcementi.

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India Cements hikes FII limit

India Cements will increase the Foreign Institutional Investors limit in its paid-up equity share capital to 40 per cent. In a statement to the BSE, the company added it will raise $75 million through various options including GDRs, ADRs and FCCBs.

The company's extraordinary general meeting, slated for April 13, will also increase its authorised capital from Rs 325 crore to Rs 335 crore.