Shares of Deepak Fertilisers and Petrochemicals Corporation and Mangalore Chemicals and Ferlizers rose 2.42% to 2.77% at 10:56 IST on BSE on reports that CCI has approved Deepak Fertilizers' proposed additional stake buy in MCFL.
Mangalore Chemicals and Ferlizers (up 2.77% at Rs 70.50) and Deepak Fertilisers and Petrochemicals Corporation (up 2.42% at Rs 163.05) edged higher.
Meanwhile, the S&P BSE Sensex was down 80.01 points or 0.3% at 26,340.66.
According to reports, the Competition Commission of India (CCI) has approved Deepak Fertilisers and Petrochemicals Corporation (Deepak Fertilisers)'s proposed additional stake buy in Vijay Mallya group firm Mangalore Chemicals and Fertilizers (MCFL). The approval from the fair trade watchdog also paves the way for Deepak Fertilizers to make the open offer to acquire further 26% stake in MCFL.
Under the deal, Deepak Fertilizers' subsidiary SCM Soilfert would acquire up to 26% shareholding in MCFL through an open offer in addition to 0.8% stake buy through open market. CCI approval pertains to both transactions, as per reports. Zuari Group is also in the race to buy additional 26% stake in MCFL and CCI order in this regard is awaited, reports added. Either of the two open offers can start only within 12 working days from receiving CCI approval for the second deal, reports added.
It may be noted that Deepak Fertilizers as well as Saroj Poddar-led Zuari group are looking to take over MCFL.
Deepak Fertilisers and Petrochemicals Corporation's net profit declined 6.7% to Rs 39.85 crore on 27.2% growth in net sales to Rs 939.45 crore in Q1 June 2014 over Q1 June 2013.
Deepak Fertilisers and Petrochemicals Corporation is a multi-product Indian conglomerate with a multi-product portfolio spanning industrial chemicals, bulk and specialty fertilisers, farming diagnostics and solutions, technical ammonium nitrate, mining services and consulting and value added real estate.
Mangalore Chemicals and Ferlizers reported a net loss of Rs 9.76 crore in Q1 June 2014, lower than net loss of Rs 12.04 crore in Q1 June 2013. Net sales declined 29% to Rs 430.99 crore in Q1 June 2014 over Q1 June 2013.
Mangalore Chemicals & Fertilizers is a fertilizers manufacturing company situated in Karnataka, India. The company makes a wide range of products, that include urea, di-ammonium phosphate, muriate of potash, granulated fertilizers, micronutrients, soil conditioners and specialty fertilizers.
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