Calcutta, Oct. 15: Texmaco has raised its open offer price for Kalindee Rail Nirman to throw rival suitor Jupiter Metal off the track.
Shareholders of Kalindee will now get Rs 71 per share for subscribing to the Texmaco offer against Rs 70 being proposed by Jaipur-based Jupiter.
Calcutta–based Texmaco had previously promised Rs 68 apiece to buy up to 30 per cent of the paid-up equity of Kalindee.
“We want to demonstrate to the Kalindee shareholders that Texmaco is serious about the company and want to reward them,” A.K. Vijay, chief financial officer of Texmaco, said.
Texmaco has already picked up a 24.9 per cent stake in Kalindee and is much ahead of its competitor in the race to control the company.
Moreover, Texmaco has entered into an agreement with the existing promoters of Kalindee to buy out their cumulative 15.63 per cent stake.
However, the execution of this deal will only be completed after the open offer runs its course.
Vijay said Texmaco could raise the offer price because market regulator Sebi had not yet announced the cut-off date after which the price could not be revised further.
“I am hoping both the open offer would start by the end of the month,” he added.
Texmaco might have to shell out around Rs 35 crore if the open offer is fully subscribed.