Deepak Fertilizers up 4% on stake buy in Mangalore Chemical

Deepak Fertilizers and Petrochemicals Corporation shares gained more than 4 percent in morning trade Thursday, after the fertiliser company through its subsidiary SCM Soilfert bought 24.46 percent stake or 2,89,91,150 equity shares in Vijay Mallya-led Mangalore Chemicals and Fertilisers  (MCF) on Wednesday.

The company bought stake through multiple block deals amounting to over Rs 179 crore at Rs 61.75 apiece.

Deepak Fertilizers said, "The investment is very strategic and a good fit with the company’s business.

UB group said there was no takeover battle for Mangalore Chemicals. "We will retain control over MCF," he added.

United Breweries Holdings holds 16.07 percent stake and McDowell Holdings has 4.92 percent stake in MCF as of March 2013.

The prominent sellers were DSP Blackrock (which sold 2.4 percent stake at Rs 63/share), Sundaram BNP Paribas MF (sold 2.5 percent stake at Rs 63/share), Indian Syntans (sold 3.4 percent stake at the same price) and Robust Marketing (sold 4.6 percent stake at Rs 56.25/share).

In April, Goa-based Zuari Agro had bought 9.72 percent stake in MCF.

Zuari said the company was evaluating all options and intended to be long-term investor in company.