Mangalore Chemicals spurts after Deepak Fertilisers announces open offer

Mangalore Chemicals & Fertilizers spurted 11.70% to Rs 69.20 at 10:39 IST on BSE after Deepak Fertilisers and Petrochemicals announced an open offer to acquire up to 26% stake from the public shareholders of the company.

The company made the announcement during trading hours today, 23 April 2014.

Meanwhile, the BSE Sensex was up 106.13 points, or 0.47%%, to 22,864.50.

On BSE, so far 21.91 lakh shares were traded in the counter, compared with an average volume of 29,337 shares in the past one quarter.

The stock hit a high of Rs 72.35 and a low of Rs 62.50 so far during the day. The stock hit a 52-week high of Rs 73 on 12 July 2013. The stock hit a 52-week low of Rs 35.85 on 13 June 2013.

The stock had underperformed the market over the past one month till 22 April 2014, sliding 0.48% compared with the Sensex's 4.61% rise. The scrip had also underperformed the market in past one quarter, rising 6.44% as against Sensex's 6.66% rise.

The small-cap company has an equity capital of Rs 118.52 crore. Face value per share is Rs 10.

Shares of Deepak Fertilisers and Petrochemicals were up 5.20% at Rs 126.50. As on 31 December 2013, Deepak Fertilisers and Petrochemicals (DFP) held 2.89 crore shares, or 24.5% stake, in Mangalore Chemicals & Fertilizers (MCF).

DFP proposes to purchase up to 20 lakh fully paid up equity shares of MCF, representing up to 1.7% stake, at a price not exceeding Rs 63 per equity share today, 23 April 2014. Assuming purchase of the entire quantity of shares as indicated, DFP's stake in MCF will rise to 26.1%. Hence, it triggers an open offer for further purchase of equity shares by DFP in MCF.

DFP announced an open offer to acquire up to 3.08 crore fully paid up equity shares of MCF, constituting 26% of the voting share capital. The open offer is priced at Rs 61.75 per share.

Net profit of Mangalore Chemicals & Fertilizers surged 382.07% to Rs 27.96 crore on 21.29% rise in net sales to Rs 840.51 crore in Q3 December 2013 over Q3 December 2012.

Mangalore Chemicals & Fertilizers is a fertilizers manufacturing company situated in Karnataka, India. The company makes a wide range of products, that include urea, di-ammonium phosphate, muriate of potash, granulated fertilizers, micronutrients, soil conditioners and specialty fertilizers.

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