Fame India, which is in a two-way takeover battle between INOX Leisure and Reliance Media Works (RMW), rose for the third day in a row, as its share price inched close to Rs 90.

Both Inox and RMW have made open offers to buy 20 per cent and 62 per cent stake in the company at a price of Rs 51 and Rs 83.40 per share, respectively. While INOX owns 51 per cent stake in Fame, RMW has acquired 14 per cent stake in the company through open market operations.

BSE  |  NSE Price

Also Read   Related Stories News Now - RMW knocks on Sebi door to get equal seats on Fame board - Reliance Capital acquires Fame India shares - Fame India appoints Kishore Biyani as director - Reliance Cap Partners picks up 1.7% in Fame - Reliance Cap raises stake in Fame by 1.70% - Fame India at lower circuit, after a 17-day surge

Also Read   Related Stories News Now - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report More

The stock generated substantial interest among the trading community and has gained 84 per cent in one month. “If INOX increases its open offer price, RMW is likely to follow suit as both the companies are keen on acquiring Fame,” said a Mumbai-based stock research analyst, requesting anonymity.

With share price inching towards Rs 90, Fame India might see conversion of its foreign currency convertible bonds. “Fame’s FCCBs are coming up for redemption in April 2011, and this could get converted into equity, given the current run-up in the Fame stock price,” he said.

Around 60 per cent of the FCCBs are convertible at Rs 90 a share and the remaining at Rs 107 a share. Fame’s equity dilution after the FCCB conversion would be about 27.5 per cent. He said Inox is also considering to sweeten its open offer price. Inox spokesperson did not comment on the matter.

Meanwhile, RMW has sent a letter to stock market regulator Sebi, challenging a rejig of the board of directors of Fame India. On Sunday, Fame India appointed Kishore Biyani, Chairman of Future Group, as an independent director. The other two appointees are Deepak Asher and Pavan Jain, existing directors on the board of Inox Leisure. A spokesperson of RMW said the “company has sent a letter to Sebi and has requested the regulator to take action”.

Inox shares gained 1.10 per cent to close at Rs 73.35 and RMW gained 3.41 per cent to close at Rs 229.05 on BSE.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report

Tags : Fame India | open offer talks | INOX Leisure | Reliance Media Works | BSE | FCCB | Kishore Biyani |   Read Business news in  Advertisements -  Journey on, We are by Your Side. Click here to know more -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE!