Sugar manufacturer EID Parry, part of Chennai-based Murugappa Group, on Monday made an open offer for 20 per cent stake in GMR Industries at Rs 111 per share.
The sugar major has agreed to acquire 40 lakh shares, representing 20 per cent of the company, at Rs 111 per share, aggregating to Rs 44 crore, GMR Industries said in a filing to the Bombay Stock Exchange (BSE).
Following the open offer, shares of GMR Industries closed at Rs 118, up 5.0 per cent on the BSE. The scrip surged 9.47 per cent to touch an intra-day high of Rs 123.
On Sunday, EID Parry had entered into a definite agreement with GMR Holdings Pvt Ltd to buy a minimum 65 per cent equity in GMR Industries.
According to the December quarter shareholding pattern available on the BSE, GMR Holdings Pvt Ltd held 1.5 crore shares or 74.8 per cent shareholding in GMR Industries.
Post the open offer, GMR Group will become a minority shareholder in the company.
The deal will mark EID Parry's entry into Andhra Pradesh and also consolidate its position as a leading sugar manufacturer in cane rich areas of north Karnataka.
The acquisition will strengthen the company's position as one of the leading sugar companies in India and increases the number of integrated complexes, said A Vellayan, chairman, EID Parry.