Shares of edible oil firm KS Oils surged by 19% on the bourses today amid media reports that commodities trader Glencore International AG is contemplating the acquisition of a stake in the company.
The stock spurted by 18.65% to a high of Rs 13.10 in early trade on the Bombay Stock Exchange (BSE). In a similar fashion, the scrip zoomed up by 19% to an early high of Rs 13.10 on the National Stock Exchange.
The stock was later trading 16.03% higher at Rs 12.81 on the BSE at 1150 hours.
As per media reports, Glencore wants to own assets in the India's agricultural commodities sector after its record initial public offering (IPO) in London earlier this year and is evaluating the prospects of submitting a bid for a stake in KS Oils.
However, KS Oils has declined comment on the issue, terming it "market speculation".
Meanwhile, KS Oils' board of directors yesterday gave approval for raising up to Rs 250 crore by way of issuance of convertible warrants or equity shares to various investors or promoters.
In a separate announcement to the stock exchanges yesterday, the company said its shareholders have approved raising up to $150 million through the issuance of global depository receipts (GDRs).
