Century Textiles and Industries has surged 8% to Rs 451 on reports that Kumar Mangalam Birla will acquire 16% stake in the company, which he is eventually set to inherit from grandfather Basant Kumar Birla.
Based on the report, four private companies will be used to consolidate the holding of the Aditya Birla Group chairman for the first time in the 117-year-old history of Century Textiles.
Aditya Marketing and Manufacturing Ltd, Essel Mining and Industries Ltd, IGH Holdings Ltd and Padmavati Investments Ltd will subscribe to 1.86 crore preferential warrants of Century, which will be converted into equity shares in 2015.
Aditya Marketing and Padmavati Investments hold 0.08% of Century. After conversion, these four investment companies will together hold a 16.77% stake in Century.
The stock opened at Rs 428 and touched an intra-day high of Rs 467.90, which is the 52 week high for the counter. Over 2.47 million shares were traded on both the stock exchanges so far.
