Fame India at lower circuit, after a 17-day surge

Fame India has hit the 5% lower circuit at Rs 86. The stock had appreciated 127% in last 17 trading days following the takeover battle between Inox and ADAG group.

The stock opened at the 5% upper limit at Rs 95, and then hit the lower circuit. The counter has seen trades of around 292,000 equity shares as against the average volume of around 55,000 shares in the last two weeks.

Anil Ambani-controlled, Reliance MediaWorks has made a competitive bid for 62.08% stake in the company at Rs 83.40 a share, which is 63.5% higher than the open offer by Gujarat Fluorochemicals Ltd's, Inox Leisure at Rs 51 a share. The Reliance MediaWorks offer for the company will open on April 1, 2010 and close on April 20, 2010, the company said in a filing on the BSE on Tuesday.

Gulshan Investment (6.5% stake) and Shail Investments (5.3%) are the major public shareholders holding more than 5% stake in the company at the end of December 2009. Sunshine Insurance Agents, Quantum Securities, Thirdwave Business Aids and Networth Commercial Pvt Ltd are other non-promoter shareholders have more than 1% stake, collectively they hold 17.4% stake in the company.

Most of these entities acquired shares from Citi Bank as the bank's holding in company has fallen below 1% currently from 13.5% at the end of September 2009.