Deepak Fertilisers Sells Over 12% Stake in MCFL

Mumbai: Deepak Fertilisers on Monday sold an over 12 per cent stake in Vijay Mallya-led UB Group's Mangalore Chemicals and Fertilisers Ltd (MCFL) through open market route.

Pune-based Deepak Fertilisers has been competing with industrialist Saroj Poddar-led Zuari group for taking control of MCFL since July 2013.

According to bulk deal information with stock exchanges, Deepak Fertilisers sold a total of 1.43 crore shares, representing a 12.07 per cent stake, in MCFL.

The Pune-based company held MCFL shares through its subsidiary SCM Soilfert Ltd.

MCFL shares were sold at an average price of over Rs 87 apiece, valuing the transaction at Rs 125.69 crore.

Deepak Fertilisers sold 80.83 lakh shares on the BSE and 62.22 lakh on the NSE.

At the end of December quarter, 2014, Deepak Fertilisers subsidiary SCM Soilfert held 3.44 crore shares in MCFL, representing a 29.05 per cent stake in the company. In January, it had sold a 2.2 per cent stake in MCFL.

The move follows the Zuari group announcing the launch of its open offer on April 20 to acquire an additional 36.56 per cent stake in MCFL.

Meanwhile, in separate transactions on the bourses, four entities - acquired a total of 48.32 lakh shares in MCFL worth about Rs 42.45 crore.

These entities are JMS Mining Services, IIFL National Development Agenda Fund, IIFL Asset Revival Fund and Koduru Sravanthi.

The battle has been going on between Zuari group and Pune-based Deepak Fertilisers for a long time for taking over MCFL. At the end of December 2014, Zuari held a 16.47 per cent stake in MCFL.

Crisis-hit UB Group, which had earlier supported Zuari offer, owns 21 per cent stake in MCFL.

Shares in MCFL, on Monday, ended at Rs 87.55 apiece on the BSE, down 0.91 per cent from the previous close.