There is a lot of activity on the counter of Essel Propack. Volumes on the counter have gone up almost 4.5 times. The stock has been gaining for the last 7 days and has risen 14.02% in the period; today it rose 2.5% to Rs.135.90, which is not too far from its 52-week high of Rs.143.50.
The stock price rose on news that Blackstone group will be buying a controlling stake in Essel Propack. The PE company will be buying a 51% stake in the company at Rs.134/share.
This takeover will also trigger a mandatory open offer for an additional 26% stake.
The open offer price has been fixed at Rs.139.19/share.
Following the open offer, the promoter, Ashok Goel will retain 6% stake in the company.