Nitesh Estates locked on 20% UC

Nitesh Estates was locked on the 20% UC today morning the moment it opened for trade at Rs.15.93, a new 52-week high.

The stock has zoomed up on unconfirmed news that the Chinese group – Fosun is looking at investing Rs.800 crore in the company. The talk is that it is at advanced stages of discussion to pick up a 50% stake in the company and will likely use Nitesh Estates as its platform to spread its wings into India.

It is said that the founder, Nitesh Shetty will continue to retain his 25% stake and continue with his responsibilities. But this M&A, when it happens, will trigger off the mandatory open offer.

Fosun is not new to this kind of M&A deal – it has already got a controlling stake in Hyderabad based, Gland Pharma.