The Colour-Chem counter witnessed hectic activity on Wednesday following the Sebi order to the Swedish parent, Clariant International, to make an open offer to shareholders of Colour- Chem at Rs 320 per share.
On the BSE, the stock came off from its intraday high of Rs 249 to an low of Rs 195 but settled at Rs 214.70, up 1.30 per cent. The counter witnessed 2.81 lakh shares changing hands through 5,143 trades.
Between September 19 and October 22, Colour-Chem share advanced 14 per cent to Rs 211.95 from Rs 186.
A dealer from a local brokerage said the open offer price of Rs 320 and the interest payment of Rs 216 per share, the total cost per share to the parent would be around Rs 535-536, almost what the market was expecting.
But players who had built positions on Colour Chem are now offloading as they feel that the parent would appeal against the Sebi order and the open offer would be delayed further.
The Sebi has ordered the acquirer to pay an interest of 15 per cent per annum to shareholders of Colour Chem for the delay in making the open offer. Interest will be paid for the period from March 22, 1998.
The order was issued on October 16, 2002, and the open offer has to be made within 45 days of the date of the order. The offer price, inclusive of the interest payment will amount to Rs 535-536 per share, it is expected, a premium of over 155 per cent from the Wednesday
