Arbitrage trading lifts Mudra three percent

Shares of Mudra Lifestyle rose as traders saw arbitrage opportunities in the shares in the wake of the company's open offer which began on June 10. On Thursday, the stock gained 2.7% to 54.9 against the offer price of 60 per share.

The amount of arbitrage gains, however, will depend on the ratio at which the tendered shares are accepted by the acquirer company. E-Land Fashion China Holdings, which held a 25% stake in Mudra Lifestyle as on March 31, has made an offer to buy 20% more in the Indian company.

E-Land Fashion, on Thursday, informed bourses it may revise the offer price and size upward up to seven days ahead of its closure on June 29, 2011.

(Contributed by Vijay Gurav)