Poddar's first right of refusal in MCF stumps Deepak Fertilisers

After Deepak Fertiliser's entry in MCF, it seemed like race for Mallya's MCF was in its final lap but back-to-back action from Poddar in market

It seems Zuari's Saroj Poddar has stumped Deepak Fertlisers with his right of first refusal on Vijay Mallya's shares in Mangalore Chemicals and Fertilisers (MCF). The first right of refusal has given a jolt to Deepak Fertiliser's plans as the latter is still trying to come to terms with the news.

After Deepak Fertiliser's surprising entry in MCF it seemed like the race for Mallya's MCF was in its final lap but back-to-back action from Poddar in the market, coupled with the right of first right of refusal has given a headache to the Pune-based company.

An official of Deepak Fertilisers said that it was the news report in Business Standard which made brought Poddar's right of refusal on Mallya's shares in MCF to light and this has made the team go back to the board room to rethink its strategy on MCF.

“We were not at all aware of this, so this surely was a surprise to us. We are keeping a high level of secrecy over our next move. We are re-thinking our strategy,” said the official requesting anonymity.

When contacted company CFO Somnath Patil also echoed the same by saying they needed some time to find out the implication of Poddar's claims.

“At this moment I cannot say what would be the implication. If Mr. Poddar has the RoFR, it’s fine but we are yet to finalize our next move,” he added.

 “We have over 24% in MCF so there are also shares apart from Mallya's and we are trying to target those. A% or so would trigger an open offer for us which can change the game. Some a move by S C Mehta, chairman of Deepak Fertilisers, can be expected soon,” the official added.

Poddar's move to meet Mallya in London has made the soft spoken strategist's intent clear on the fertiliser major. Earlier this year, Poddar bought into MCF. Deepak Fertiliser was also eyeing the stake, but Poddar was quicker.