Srikalahasthi Pipes, Electrosteel Castings dip up to 18% post nod to merger

Srikalahasthi Pipes shareholders will receive 59 equity shares of Electrosteel Castings for every 10 equity shares held in the company

Shares of Srikalahasthi Pipes (SPL) and Electrosteel Castings (ECL) tanked up to 18 per cent on the BSE in the intra-day trade on Tuesday after their respective boards on Monday approved a draft scheme of amalgamation for the merger. SPL shareholders will receive 59 equity shares of ECL for every 10 equity shares held in the company.

The stock of SPL tanked 18 per cent to Rs 109.50 on the BSE in intra-day trade and was trading close to its 52-week low price of Rs 90.35 touched on March 25, 2020. Shares of ECL, on the other hand, slipped 11 per