Mumbai, Oct. 23: The Colour Chem scrip witnessed intense volatility on the bourses today, as it surged more than 17 per cent in intra-day trade only to fall sharply from these levels.
The surge came following a direction given by the Securities and Exchange Board of India (Sebi) to the Switzerland-based Clariant International, to make an open offer to shareholders of Colour Chem Ltd at a price of Rs 320 per share. This was after Sebi found that the Swiss company’s acquisition of Hoechst’s chemicals business violated the domestic takeover regulations.
The market regulator also directed Clariant to pay interest at 15 per cent per annum to the shareholders for the loss of interest caused to them from March 22, 1998, till the date of actual payment of consideration for the shares to be tendered in the open offer.
The scrip opened at least 17 per cent higher at Rs 249, after which it plummeted to a day’s low of Rs 195, later finishing at Rs 214.70, a marginal rise over the previous finish of Rs 211.95. Brokers speculate that the Swiss parent may appeal against the Sebi ruling.
Meanwhile, shares of engineering major ABB Ltd have been under constant pressure over the past couple of days, following unconfirmed reports that its Switzerland-based parent may file for bankruptcy.