Shanthi Gears has frozen upper circuit of 5% at Rs 63.15, its highest level since October 2008, after Tube Investments of India proposed to acquire majority stake in the company at a price of Rs 81 per share.
“The board of directors of the company at its meeting held on today, July 13, approved the acquisition of 36 million equity shares of Re 1 each of Shanthi Gears Limited (SGL), from the promoters of SGL, representing 44.12% of SGL’s equity capital, at Rs 81/- per share,” Tube Investments of India said in a filing.
Tube Investments has made an Open Offer to acquire additional 21.24 million shares, representing 26% of the paid up share capital of SGL, at a price of Rs 81/- per share, after entered into a Share Purchase Agreement with the promoters of SGL, for the purchase of the above said shares, it added.
The stock of SGL has opened at Rs 61.45 and locked maximum higher limit of the day after the announcement on the BSE. A combined 290,222 shares have already changed hands so far and there are pending buy orders for 783,107 shares on both the exchanges.
Tube Investments of India, on the other hand, also rallied 9% to Rs 160 on the NSE. A combined around 250,000 shares have changed hands on the counter so far.
