Mahindra Ugine Steel Company is locked in upper circuit of 5% for fourth day in a row at Rs 96 after the company after Mahindra Group has entered into a share-swap arrangement with Spain’s CIE Automotive to create a global auto component manufacturer.
The stock has rallied 129% in past three weeks from Rs 41.70 on BSE, compared to 5.5% fall in benchmark Sensex.
A combined 699,783 shares have already changed hands on the counter and there are pending buy orders for 663,329 shares on BSE and NSE at 1016 hours.
Mahindra Group has agreed to merge its five listed and unlisted subsidiaries, including Mahindra Ugine Steel Company and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5 per cent in CIE for euro 96.24 million (Rs 740 crore).
This development would expand the Group's geographical footprint, and grow the collective product portfolio going ahead, says analyst at Angel Broking.
The stock has rallied 129% in past three weeks from Rs 41.70 on BSE, compared to 5.5% fall in benchmark Sensex.
A combined 699,783 shares have already changed hands on the counter and there are pending buy orders for 663,329 shares on BSE and NSE at 1016 hours.
Mahindra Group has agreed to merge its five listed and unlisted subsidiaries, including Mahindra Ugine Steel Company and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5 per cent in CIE for euro 96.24 million (Rs 740 crore).
This development would expand the Group's geographical footprint, and grow the collective product portfolio going ahead, says analyst at Angel Broking.
