Mangalore Chem stock slumps 10% after Deepak Fert buys stake
Mumbai: Shares of Mangalore Chemicals and Fertilisers on Thursday slumped nearly 10 percent, after Deepak Fertilisers & Petrochemicals Corporation acquired 24.46 percent stake in the Vijay Mallya-promoted company through open market transactions for about Rs 180 crore.
After making a weak opening, shares of the company further lost 9.96 percent to Rs 50.60 -- its lowest trading permissible limit for the day on the BSE.
At the NSE, the stock tanked 9.96 percent to touch its lower circuit limit of Rs 50.65.
However, Deepak Fertilisers was trading 1.91 percent higher at Rs 95.80.
After the acquisition, Mangalore Chemicals and Fertilisers promoter UB group will be reduced as the second largest shareholder in the company behind Deepak Fertilisers, but both companies said that control will continue to remain with Vijay Mallya group.
In a filing to the BSE, Deepak Fertilisers and Petrochemicals Corporation yesterday said its wholly-owned subsidiary SCM Soilfert Limited "has acquired 2,89,91,150 equity shares of face value of Rs 10 each representing 24.46 percent of share capital of Mangalore Chemicals & Fertilisers Ltd".
Deepak Fertilisers and Petrochemicals has bought about 2.36 crore shares through several block deals at Rs 63 per share. Another nearly 54 crore shares have been bought through open market.