Madras Aluminium Co up 5% on delisting announcement

MUMBAI: Madras Aluminium Company Lt opened at its upper circuit of 5 per cent at Rs 59.15 Tuesday on the promoters' proposal to acquire balance shares and delist the company. The stock has gained 23 per cent in the last one month. The BSE benchmark Sensex was down nearly 250 points in the few minutes of trade.

In the board meet held on Jan 19, Malco received a proposal from Twinstar Holdings Ltd to acquire the balance 20 per cent equity in accordance with Sebi's delisting guidelines.

Twinstar Holdings, with 80 per cent stake in the company, is the promoter of Malco and part of Vedanta Resources Plc.

According to the shareholding pattern as on Dec 31, 2008, mutual funds hold a little over 1 per cent in the company, while retail investors have around 3.84 per cent. FIIs also have a stake of 11.21 per cent.

Malco was in the news recently when it temporarily suspended its entire aluminium production on account of falling LME aluminium prices and higher input costs & cost of production. It also transferred the management control of India Foils Ltd, in which it had a controlling stake, to ESS DEE Aluminium Ltd.