Jupiter Metal revises open offer price for Kalindee Rail

Texmaco unlikely to come up with a counter offer immediately

The race to acquire Kalindee Rail Nirman has intensified with Jupiter Metal, an Om Kothari group company, revising its open offer price to buy 30 per cent stake in Kalindee. The new revised price proposed for each equity share is Rs 70, Om Kothari said in a filing to the Bombay Stock Exchange (BSE).

According to Adventz Group officials, group company Texmaco Rail & Engineering is not considering a counter open offer at this moment. It will wait before making any moves, they added.

“We are not bothered as we have already got 36.64 per cent. So another open offer with revised prices is not on radar for the moment. We have enough time so we will wait and watch before making next move,” said an Adventz group official requesting anonymity, citing market implications.

Jupiter Metal’s move from comes after Saroj Poddar-led Texmaco Rail had launched an counter open offer on last Saturday to buy an additional 30 per cent stake in Kalindee Rail at Rs 68 for each equity share. Poddar has also bought the promoter’s stake in Kalindee last Saturday after the latter decided to give 24.9 per cent shares via the preferential allotment route.

The move by little known Kothari group shows that it is not going to be a smooth takeover for Texmaco's  Poddar. Texmaco's July 20 move to come up with a counter open offer of Rs 68 for each share was in response to Jupiter Metal's  proposed  non-conditional open offer to buy 30 per cent stake at Rs 65 a share.

According to the Securities and Exchange Board of India (Sebi) regulations, a company would have to make an open offer for at least 26 per cent if its stake exceeds 25 per cent.

Kalindee’s scrip has gained over 25 per cent since the last fortnight when the takeover buzz got louder. The scrip were trading 3.69 per cent higher on BSE at Rs 75.80 on Wednesday.