K S Oils surges over 19% on stake sale buzz

NEW DELHI: KS Oils, a leading domestic edible oil firm, was trading 19% higher in early trade today on reports that the world’s largest commodities trader Glencore International AG was evaluating a bid for the company.

The stock has surged to its day’s high at Rs 13.10 or 19% on the BSE. At 11:37 a.m., the company’s shares were trading 16.36% higher at Rs 12.80.

The $145-billion Glencore wants to own assets in the India’s agricultural commodities sector after its record initial public offering ( IPO) in London earlier this year.

“KS Oils had revenue in excess of Rs 4,600 crore, or $1 billion, in last fiscal and owns popular brands such as Kalash, Double Sher and KS Gold,” according to a report.

Recent media reports suggest that KS Oils had mandated Bank of America Merrill Lynch and PwC for a share sale. The debt-laden KS Oils, in which Citigroup Venture Capital International and New Silk Route Private Equity are investors, saw its share price plunge almost 80% and several senior executives quit in recent months.

“The promoters, who are seen holding about 31% stake, had pledged shares to raise funds for scaling up trading in mustard seeds in which KS Oils is the largest player in India,” according to a TOI report.