Guj NRE Coke rises

Gujarat NRE Coke is doing well in the morning trades currently. The stock is up 3% at Rs.17.20, with an intra day high and low at Rs.17.50 and Rs.16.85 respectively. Market cap stands at Rs.980 crore.

The stock is up on news that Jindal Steel and Power (JSPL) which wanted to acquire controlling interest in Gujarat NRE’s Australian subsidiary has managed to acquire 31.49% stake. This was acquired through an open offer by putting a all cash bid of AUD 0.20 per share.

The promoters of Gujarat NRE had rejected JSPL’s bid to acquire the company as it felt that it did not concur with the future plans of the company. It had also advised its shareholders to reject the bid. Prior to this stake buy, JSPL held 19.48% and now it has gone up to 31.49% and promoters hold 64.15%, leaving less than 5% floating stock on the Australian Stock Exchange.