Ramsarup hits circuit as Arcelor seen circling
Shares of Kolkata-based Ramsarup Industries were frozen at its daily maximum permissible trading limit of 20% on speculation that ArcelorMittal, the world’s largest steelmaker, is close to buying a stake in the company. The stock, which has risen close to 30% in a week, closed at Rs 102.1. The buzz is that Arcelor is likely to buy the stake at Rs 120 apiece. A senior Ramsarup official declined to comment. Market sources said the deal is likely to be structured, with ArcelorMittal having an option to raise its minority stake in the company later. The company will get an infusion of about Rs 1,000 crore by way of partly convertible debentures shortly, according to a person in the know. The instrument will be converted into equity shares in future.
Inox gains 15% on stake sale speculation
Shares of Inox Leisure rose 14.7% to Rs 74.75 on speculation the Anil Ambani group is in talks to buy a stake in the company. Denying the talk, Deepak Asher, director of Inox Leisure, said, “The speculation is baseless.” An Anil Ambani group spokesperson declined comment. According to a market source, in this deal, Inox will be valued at Rs 400 crore. The promoters of Inox Leisure are locked in a takeover battle with Anil Ambani’s Reliance MediaWorks (RMW) to acquire Fame India. Inox bought Fame promoters’ 43% stake in the company for Rs 44 a share in early March and subsequently purchased another 7% for Rs 50.75 before launching the mandatory 20% open offer for the minority shareholders of Fame at Rs 51. Soon after the offer, RMW claimed that the Fame promoters overlooked a superior offer from it. Within a few days, RMW launched an offer for 63% of Fame shares at Rs 83.4 a share. Both offers are awaiting market regulator Sebi’s approval.
EIH jumps 5% on ITC stake hike hopes
Shares of EIH rose 5% to Rs 128.65 on expectations that, if the Sebi takeover panel’s recommendations of hiking the open offer trigger limit to 25% from the existing 15% are implemented, ITC may raise its stake in the hotel group. ITC, which owns a hotel chain, holds 14.98% in EIH while the promoters own 46.4%. While EIH promoters have denied selling their stake in the company, ITC, in the past, has expressed its desire to buyout EIH.
Contributed by Apurv Gupta & Nishanth Vasudevan
Shares of Kolkata-based Ramsarup Industries were frozen at its daily maximum permissible trading limit of 20% on speculation that ArcelorMittal, the world’s largest steelmaker, is close to buying a stake in the company. The stock, which has risen close to 30% in a week, closed at Rs 102.1. The buzz is that Arcelor is likely to buy the stake at Rs 120 apiece. A senior Ramsarup official declined to comment. Market sources said the deal is likely to be structured, with ArcelorMittal having an option to raise its minority stake in the company later. The company will get an infusion of about Rs 1,000 crore by way of partly convertible debentures shortly, according to a person in the know. The instrument will be converted into equity shares in future.
Inox gains 15% on stake sale speculation
Shares of Inox Leisure rose 14.7% to Rs 74.75 on speculation the Anil Ambani group is in talks to buy a stake in the company. Denying the talk, Deepak Asher, director of Inox Leisure, said, “The speculation is baseless.” An Anil Ambani group spokesperson declined comment. According to a market source, in this deal, Inox will be valued at Rs 400 crore. The promoters of Inox Leisure are locked in a takeover battle with Anil Ambani’s Reliance MediaWorks (RMW) to acquire Fame India. Inox bought Fame promoters’ 43% stake in the company for Rs 44 a share in early March and subsequently purchased another 7% for Rs 50.75 before launching the mandatory 20% open offer for the minority shareholders of Fame at Rs 51. Soon after the offer, RMW claimed that the Fame promoters overlooked a superior offer from it. Within a few days, RMW launched an offer for 63% of Fame shares at Rs 83.4 a share. Both offers are awaiting market regulator Sebi’s approval.
EIH jumps 5% on ITC stake hike hopes
Shares of EIH rose 5% to Rs 128.65 on expectations that, if the Sebi takeover panel’s recommendations of hiking the open offer trigger limit to 25% from the existing 15% are implemented, ITC may raise its stake in the hotel group. ITC, which owns a hotel chain, holds 14.98% in EIH while the promoters own 46.4%. While EIH promoters have denied selling their stake in the company, ITC, in the past, has expressed its desire to buyout EIH.
Contributed by Apurv Gupta & Nishanth Vasudevan
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