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HindustanTimes Mon,21 Apr 2014

Deepak Fert buys 24% in Mallya's company

HT Correspondent , Hindustan Times  Mumbai, July 03, 2013
First Published: 23:08 IST(3/7/2013) | Last Updated: 23:10 IST(3/7/2013)

The Rs. 2,606-crore Deepak Fertilizers has brought a 24.46% stake in the Vijay Mallya-promoted Mangalore Fertilizers and Chemicals, the company said on Wednesday. The stake was brought at Rs. 63 per share. Sources said the acquisition was "not a hostile takeover".

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The Burman family of Dabur and fund houses like Sundaram and DSP BlackRock have sold their shares to the company. Zuari Fertilizers is a shareholder in Mangalore Fertilizers. There was market speculation that Deepak Fertilisers will make a move to buy Vijay Mallya's 17% stake in the Mangalore Fertilizers.

"This appears to be some sort of creeping acquisition," said Gaurang Shah, AVP, Geojit BNP Paribas on the move. "But I am not bullish on the fertilizer sector because of the recent gas price revision," he added. There is, till now, no clarity on how the increased gas prices will impact profitability.

Deepak Fertilisers & Petrochemicals Corporation shares closed at R94.00 a loss of R0.75 or down 0.79% on Wednesday's trading. Shares of Mangalore Fertilizers and Chemicals closed at R56.20, a fall of R6.20 or down by 9.94%.

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