Wheels India surges on open offer by foreign promoter

Wheels India has surged 17% to Rs 865 after its foreign promoter Titan Europe Plc made an open offer for acquisition of 14.38% stake in the company at a price of Rs 725.38 per share.

“Titan Europe Plc and Titan International, Inc made an Open Offer to acquire 1.42 million equity shares of face value of Rs 10  each from the public shareholders of Wheels India constituting 14.38% of the fully diluted voting equity share capital of the company,” ICCI Securities, the manager of open offer said in a filing on behalf of Wheels India.

According to the announcement, the offer price is of Rs 725.38 per fully paid-up equity share as per the regulations, with the calculation total consideration for the offer estimated to be around Rs 102.96 crore. Currently, Titan Europe holds 35.91% or 3.54 million shares in Wheels India.

The stock opened at Rs 770 and touched a record high of Rs 870 on the BSE. A combined 97,277 shares have already changed hands on the counter in morning deals against an average sub 25,000 shares that were traded daily in past two weeks.