Mangalore Chemicals nearly doubles in one month on takeover buzz

Zuari Fertilisers has acquired an additional 2.53% stake in the company, taking its holdings to nearly 16% mark.

Mangalore Chemicals and Fertilisers (MCFL) has moved higher by 3.5% at Rs 70.20, extending its 25% rally in past four days, after Zuari Fertilisers acquired an additional 2.53% stake in the company, taking its holdings to nearly 16% mark.

The stock has opened at Rs 70.80 and touched a new high of Rs 73 on BSE. A combined 3.61million shares have changed hands on the counter till 1332 hours on BSE and NSE. The stock has been almost double in past one month from Rs 36.90 on June 12.

The move by Zuari Fertilisers to hike stake in MCFL comes a week after Deepak Fertilisers & Petrochemicals Corporation acquired 28.9 million shares, or 24.46% stake, in MCFL on July 3.

On Thursday, July 17, Zuari Fertilsers and Chemicals had purchased 2.99 million shares representing 2.53% stake in MCFL for Rs 20.35 crore. Reliance Capital had sold 1.5 million shares at an average price of Rs 68 through bulk deal, the NSE data shows.

On Wednesday, Zuari Fertilisers and Chemicals bought 4.14 million shares, or 3.50% stake, while on April 2, it had acquired 11.5 million shares or 9.73% stake in MCFL through a bulk deals. After three bulk deals, Zuari Fertilisers now holds 18.66 million shares, or 15.75% stake in MCFL.

Meanwhile, the promoters holding in the company has declined to 21%, after its lenders sold pledged MCF shares in the market last week to recover loans granted to his other group companies

“United Breweries (Holdings) in the company reduced to 15.05% from 16.07% due to reduction in shareholding on account of invocation of pledge created in favour of the lender,” MCF said in BSE filing.

Vijay Mallya’s UB Group’s held 22% stake in the company at the end of March 2013 quarter, the shareholding pattern data shows.