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IPCL drops 32% on huge selling pressure

Mumbai, Aug. 29: The Indian Petrochemicals Corporation Ltd (IPCL) counter plunged 31.86 per cent on the Bombay Stock Exchnage today. The drop is said to be the steepest fall ever for a stock in a single session, after circuit filters were relaxed for securities eligible for derivatives trading.

The stock crashed to an intra-day low of Rs 73.15, before finishing marginally up at Rs 74.10. Around 1.22 crore shares were traded on the BSE and NSE combined. Market circles said that the drop was due to sudden selling by investors who had bought the shares after the open offer announcement.

IPCL has an equity base of Rs 249 crore shares and close to 80 per cent of the stake is held between the government and RIL.

Meanwhile, Reliance today said that its open offer for 4.96 crore shares of IPCL, at a price of Rs. 231 per share, received a huge response of 8.74 crore shares, an oversubscription of 76 per cent. According to the terms of offer, it would accept about 57 per cent of these shares tendered.

For all the accepted shares under the open offer, remittances towards payment consideration are expected to be despatched to all the investors, except in cases where RBI approval is awaited, by September 2, 2002 as against the scheduled date of September 21, 2002. This is within 9 working days from the closure of the offer, the fastest remittance by any corporate in the country, Reliance added. The unaccepted shares held in demat form are expected to be credited back to the beneficial owner’s depository account by September 2. The unaccepted shares will be despatched back by the same date.

Reliance had earlier acquired a 26 per cent stake in IPCL through the strategic disinvestment of government’s stake. On completion of this open offer, Reliance’s equity stake in IPCL will increase to 46 per cent.

Reliance will invest Rs 1,147 crore for acquiring 20 per cent of IPCL’s equity through this open offer. Reliance’s total investment for IPCL acquisition will be Rs. 2,638 crore, including Rs 1,491 crore paid to the government for the 26 per cent stake.

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