Mangalore Chemicals & Fertilizers hit an upper circuit limit of 20% at Rs 88.10 at 11:22 IST on BSE after the company said Deepak Fertilisers and Petrochemicals Corporation has increased its open-offer price to acquire additional stake in the firm.
The announcement was made after market hours on Thursday, 25 September 2014.
Meanwhile, the BSE Sensex was down 42.28 points, or 0.16%, to 26,426.08.
On BSE, so far 15.70 lakh shares were traded in the counter, compared with an average volume of 33,236 shares in the past one quarter.
The stock hit a high of Rs 88.10 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 84 so far during the day. The stock hit a 52-week low of Rs 48.25 on 5 November 2013.
The stock had outperformed the market over the past one month till 25 September 2014, rising 6.06% compared with 0.12% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 0.96% as against Sensex's 4.56% rise.
The small-cap company has an equity capital of Rs 118.52 crore. Face value per share is Rs 10.
Deepak Fertilisers and Petrochemicals Corporation has offered to acquire up to 3.08 crore equity shares, or 26% stake, from the public shareholders of Mangalore Chemicals & Fertilizers (MCF) at Rs 93.60 per shares, an upward revision in open offer price from Rs 63 offered earlier.
The move comes amid a two-way battle for control between Deepak Fertilisers on one side and UB group-Zuari Fertilizers and Chemicals combination on the other.
Following the revision in open offer price announced by Deepak Fertilisers, Zuari chief Saroj Poddar and MCF promoter Vijay Mallya also revised their open offer to acquire up to 26% stake from MCF shareholders to Rs 81.60 per share from Rs 68.55 per share offered earlier, in a bid to ward off Deepak Fertilisers' move. The announcement was made after market hours on Thursday, 25 September 2014.
As on 30 June 2014, Deepak Fertilisers, through SCM Soilfert, held 25.31% stake in MCF. Zuari Fertilizers and Chemicals held 16.43%. Three UB Group firms -- Kingfisher Finvest India/McDowell Holdings/United Breweries Holdings -- held 21.97% stake.
Earlier this year, after Deepak Fertilisers initiated a hostile takeover bid - offering to buy additional shares in the firm at Rs 63 per share -- Mallya teamed up with Zuari Fertilizers and together the two launched a rival joint open offer for Rs 68.55.
Mangalore Chemicals & Fertilizers reported net loss of Rs 9.76 crore in Q1 June 2014 as against net loss of Rs 12.04 crore in Q1 June 2013. Net sales declined 29.01% to Rs 430.99 crore in Q1 June 2014 over Q1 June 2013.
Mangalore Chemicals & Fertilizers is a fertilizers manufacturing company. The company with its wide range of products, that include urea, di-ammonium phosphate, muriate of potash, granulated fertilizers, micronutrients, soil conditioners and specialty fertilizers, serves farmers across Southern India.
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