Adi Finechem spurts 20% intra-day

There is major activity on the counters of Adi Finechem. As against 2-week average volume of 11,000 shares, today morning trades alone have surpassed over 1 lakh shares. The stock price is up over 8% at Rs.230 with an intra day high of Rs.255 – up almost 20%. Its 52-week high and low is at Rs.395 and Rs.175.20 respectively.

The reason for the sudden spiking up of interest on the counter is its open offer. Today morning, Fairfax Holding made an open offer to buy 26% stake in the company, offering a price of Rs.212/share.

This open offer was triggered the moment promoters of Adi announced their decision to sell 44.66% stake to Fairfax – the moment any sale/acquisition exceeds 25% of total capital, immediately an open offer is mandatory.