Shares of Mangalore Chemicals and Fertilisers today rose by nearly 7 per cent as Deepak Fertilisers, the biggest shareholder in MCFL, plans to buy an additional 20 lakh shares and announced an open offer to acquire another 26 per cent stake.
MCFL's stock ended the day 6.62 per cent higher at Rs 66.05 on the BSE. During the day, the stock surged 16.78 per cent to Rs 72.35.
At the NSE, shares of MCFL settled with a gain of 4.75 per cent at Rs 65.
Shares of Deepak Fertilisers also rose by 4.07 per cent to Rs 125.15 at the BSE.
Deepak Fertilisers plans to buy an additional 20 lakh shares today and seeks to wrest control of the Vijay Mallya promoted-company by making an open offer for another 26 per cent stake for Rs 190 crore.
Deepak Fertilisers, which has a 24.46 per cent stake in MCFL, has been competing with Saroj Poddar-led Zuari Fertilisers for about a year for control of MCFL, which is part of the debt-ridden UB Group.
The open offer is being made following a proposal by Deepak Fertilisers and Petrochemicals Corporation Ltd to buy up to 20 lakh shares, representing a 1.7 per cent of stake in MCFL, at Rs 63 per share today, the company said in a filing to the BSE.
After the proposed transaction, the company's stake in MCFL would rise to 26.1 per cent, crossing the 25 per cent threshold that requires it to make an open offer in line with regulator SEBI's norms.
