UB Group raises stake in Mangalore Chemicals by 1%

The UB Group has raised its stake in Mangalore Chemicals and Fertilizers Ltd (MCFL), a firm being eyed by rivals Deepak Fertilisers & Petrochemicals Corp and Zuari Fertilisers.

Vijay Mallya-promoted UB Group bought more than 11 lakh shares in MCFL for Rs 7.69 crore.

In a filing to the BSE, MCFL said its promoter, Kingfisher Finvest India Ltd, purchased 11,18,400 shares for Rs 7.69 crore on July 22 through the open market. Following this transaction, Kingfisher Finvest's stake in MCFL has increased to 1.96% from 1.01%.

As of June 30, the UB Group had a 22% stake in MCFL, which has now increased to 22.95%.

A UB Group spokesperson declined to comment on the share purchase.

The UB Group purchased the stake when Deepak Fertilisers and Zuari Fertilisers are locked in an intense battle to take control of MCFL. While Deepak Fertilisers has bought a 24.46% stake in MCFL for Rs 179 crore through block deals, Zuari Fertilisers has been buying shares in the company since April and has increased its stake to 16.43%.

MCFL shares today fell 4.8% to Rs 57.50 at the close on the BSE.

The company has one urea-manufacturing plant near Mangalore in Karnataka with a capacity of 3.8 lakh tonnes per annum.