MCFL surges over 8% as Zuari group raises open offer size

NEW DELHI: Mangalore Chemicals and Fertilisers Ltd (MCFL) rallied as much as 8.06 per cent in trade on Wednesday, after the Zuari group announced plans to spend Rs 398.2 crore to buy upto 36.56 per cent of its stake, about 10 per cent more stake than its earlier offer.

At 09:30 a.m.; MCFL was trading 6.1 per cent higher at Rs 95.20. It hit a low of Rs 92.15 and a high of Rs 97.15 in trade today.

Kolkata-based industrialist Saroj Poddar-led Zuari group has been competing with Pune-based Deepak Fertilisers for taking control of the Mangalore Chemicals and Fertilisers Ltd (MCFL), since July last year.

At present, UB group has 21.97 per cent stake in MCFL, while Zuari group and Deepak Fertilisers have 16.47 per cent and 31.25 per cent stakes respectively, in the MCFL.

Earlier this month, the Zuari group had announced a voluntary open offer to acquire 25.9 per cent stake in MCFL.

At present, UB group has 21.97 per cent stake in MCFL, while Zuari group and Deepak Fertilisers have 16.47 per cent and 31.25 per cent stakes respectively, in the MCFL, PTI reported.

Earlier this month, the Zuari group had announced a voluntary open offer to acquire 25.9 per cent stake in MCFL. The battle for MCFL between Deepak Fertilisers and Zuari Group was triggered in July 2013 when the latter bought about 10 per cent stake in MCFL through open market, added the report.