Ending days of speculation,Subhash Chandra-promoted Essel Group has confirmed it does not have any intent to make an open offer to hike its stake in IVRCL. On April 3,Essel,through its entities,had acquired 12.27 per cent of IVRCL.
According to Essel Group,the price sought for promoters 11.2 per cent stake was manifold above the then prevailing market price. At present,there is no intent to increase its stake in the company by way of an open offer or through the open market, Essel said in a statement.
While IVRCL management were not available for comments,sources in the know clarified that they never approached Essel for stake sale or any kind of partnership. IVRCL stocks took a hit and closed at Rs 70.80 on BSE after touching an intraday high of Rs 73.40. The stock had gained considerably ever since Essel Groups stake purchase became public on expectations of a possible takeover bid.
In the statement,Essel said that few months back,the company was approached by investment bankers,stating that IVRCLs promoters,who hold about 11.2 per cent,may be interested in selling their stake in the company.
However,the indicated asking price was manifold above the then prevailing market price. It is in these circumstances and as the promoters of IVRCL were purportedly not averse to exit but at an impractical price,Essel decided to acquire a significant stake in the company as the acquisition offered exciting possibilities,the statement said.