Shares of Mangalore Chemicals & Fertilizers today soared by 16 per cent,amid reports that its promoter,Vijay Mallya-led UB Group,has been approached by potential buyers for its over 30 per cent stake in the firm.
Shares of the company zoomed up by 16.64 per cent in the intra-day trade to touch its one-year high of Rs 46.95 on the BSE. After paring some of the gains,the stock finally settled at Rs 44.35,up 10.19 per cent.
Bucking the weak broader market,the scrip settled 9.69 per cent higher at Rs 44.15 on the NSE as well.
The company,however,terms the reports about possible stake sale by its promoters as speculative.
In a regulatory filing issued to the stock exchanges,Mangalore Chemicals & Fertilizers said,”The news report appears to be speculative. It is not the policy of the
company to respond to such speculative reports.”
As per reports,the UB Group might sell part of its stake in Mangalore Chemicals & Fertilizers to raise funds to ease the liquidity crunch in the promoter group-run Kingfisher Airlines.
Mallya,who heads the cash-starved Kingfisher Airlines,has been approached by Zuari Industries and Chambal Fertilisers & Chemicals to buy UB’s shares,the report said.
The promoter holding in the company stood a little over 30 per cent in December quarter,wherein United Breweries Holdings held 24.51 per cent stake,United spirits has 0.01 per cent stake and McDowell Holdings commands 5.93 per cent stake in the company as per the shareholding pattern.
Shares of Zuari ended 0.76 per cent higher,while Chambal Fertilisers closed with a loss of 0.34 per cent.
In the broader market,the BSE barometer Sensex ended 154.93 points lower at 17,923.57.