Calcutta, Aug. 18: Balrampur Chini Mills has entered into an agreement with S.K. Garg, a promoter of Indo Gulf Industries, to acquire a 27.54 per cent stake in the company.

According to the agreement, Balrampur Chini Mills will buy 26,34,498 Indo Gulf shares held by Garg for Rs 1.61 crore, the sugar firm has informed the Bombay Stock Exchange (BSE).

The shares of Indo Gulf Industries, formerly Indo Gulf Explosives, was last traded on the BSE on November 22, 2001 at a price of Rs 1.25. The stock has been relegated to the ‘Z’ group on the bourse since then.

Indo Gulf Explosives, incorporated in March 1981, was promoted by Pradeshiya Industrial & Investment Corporation of UP, Uttar Pradesh State Industrial Development Corporation and three entrepreneurs — S.K. Garg, K.K. Garg and B.K. Agarwal. In 1994, the company changed its name to Indo Gulf Industries.

The company manufactures slurry explosives, cast booster, detonating fuse and has mills in Uttar Pradesh to make sugar molasses and bagasse.