Jaipur Polyspin up on Rajasthan Spinning deal

DALAL STREET SPIKES

Jaipur Polyspin was locked at the five per cent upper circuit of Rs 24.26 on Thursday, following the acquisition of the company's stake by Rajasthan Spinning at a premium.

Rajasthan Spinning on Wednesday announced the acquisition of a 59.6 per cent stake from the promoters at a 25 per cent premium to Wednesday's closing price of Rs 23.11.

In Thursday's trading, 11,060 shares changed hands at the Jaipur Polyspin counter. Market sources said that the stock has been in th limelight of late in anticipation of some positive development at the counter.

From a low of Rs 10.08 on October 28, the scrip jumped up 140 per cent to Thursday's close of Rs 24.26.

Rajasthan Spinning will buy 37 lakh equity shares of Jaipur Polyspin at Rs 29 per share, amounting to Rs 10.70 crore. The company will also make an open offer for another 20 per cent stake in Jaipur Polyspin. In addition, Rajasthan Spinning will pay Rs 2.53 crore as non-compete fee to the promoters of Jaipur Polyspin.