Excel Crop Care in the limelight

Excel Crop Care hit a new 52-week high at Rs.1274.85 and volumes were humongous – from a two-week average of 1300 shares traded, today alone some 22,000 shares have changed hands – volumes have jumped up over 16 times.

The stock is up in anticipation of the open offer. Sumitomo of Japan has acquired 44.98% stake in the company for Rs.623.44 crore, which works at Rs.1259.36/share. This will be acquired from its promoter group entities and certain public shareholders of Ratnabali and Sumitomo group. Promoters will be selling 24.72% stake.

Following this, the company announced that it will be launching an open offer for public shareholders to acquire over 33 lakh share, constituting 30% at a price of 1,259.36 apiece, amounting to Rs.415.80 crore.

Post the open offer, the original promoters of Excel Crop will completely exit the business, with plans to create a new similar company in the future.