Wendt India at new high as open offer starts

Wendt India has moved higher by 5% at Rs 2,050, extending Wednesday’s 20% rally, on the open offer began on July 27, 2011.

3M (Schweiz) AG plans to acquire 400,000 shares, representing 20% of the voting share capital of the company, from the exiting shareholders at a price of Rs 1,366.34. The offer shall close on August 16, 2011.

Wendt (India) is a joint venture between the Murugappa Group's Carborundum Universal and Wendt Gmbh, a unit of Swiss-based Winterthur Technologies. The partners own an equal stake of 39.87% each. In December, 3M bought Winterthur Technologies for $448 million. The acquisition gave 3M an indirect stake in Wendt (India) Ltd.

Meanwhile, the company reported a 44% year-on-year growth in consolidated net profit at Rs 5.10 crore for the quarter ended June 30, 2011, compared to Rs 3.55 crore a year ago.

The stock opened at Rs 2,000 and hit a lifetime high of Rs 2,065 on the NSE. A combined 30,007 shares have changed hands on the counter till 1038 hours, against an average 10,000 shares traded daily in the past two weeks.