Kalindee Rail promoters plan to hike stake to avoid take over

MUMBAI: Promoters of Kalindee Rail are considering hiking their stake in the company via open market purchases, counter open offer to thwart a takeover attempt by Jupiter Metals.

The latter plans to acquire 30 per cent stake in the company via a conditional open offer.

“The promoters of Kalindee Rail Nirman, are exploring options to hike their stake in order to avoid losing management control,” said Yatin Mota, Research Analyst, ET Now.

The stock surged 10 per cent higher after the story was reported on ET Now.

SEBI law doesn't permit any equity issue by promoters till the open offer is complete. Hence the promoters of Kalindee Rail are now left it two options. They can either launch a counter offer at a higher price to lure investors or buy shares from open market to hike their stake.

The Board meeting at Kalindee Rail Nirman to raise funds via equity has been inconclusive.

The stock ended at Rs 72.55, up 6.30 per cent, on the BSE. It touched a high of Rs 74.80 and a low of Rs 68.15 in trade today.