Buzz around Titagarh Wagons
There seems to be a lot of buzz around Titagarh Wagons today morning. The stock is currently up over 7% at Rs.196, closer to its intra day high levels of Rs.197.
The stock is up as it gets closer to acquiring full control on Cimmco. Last month, the company, which owns 74.76% stake in Cimmco, announced an open offer for the remaining stake, with the offer scheduled to open on 10th June and close on 23rd June. The open offer is at a price of Rs.15.50/share. The company is also acquiring non-cumulative redeemable preference shares worth Rs.50 crore in Cimmco on a private placement basis.
The market is enthused because the management apparently plans to keep Cimmco listed on the bourses and that means, the promoters, as per SEBI rules to meet the minimum 25% public shareholding norm, will have to go for a fresh process of divestment.