Federal-Mogul at record high

Federal-Mogul Goetze hit an all-time high today at Rs.659.50, rising 19%. Its 20% UC for today is at Rs.664.55.

The stock price soared after the Supreme Court dismissed an appeal against an order passed by SEBI, upholding the open offer price at Rs.608.46.

Last month, the Securities Appellate Tribunal (SAT) had dismissed an appeal against an order passed by SEBI, directing the promoters to revise the open offer price upwards.

The open offer was triggered after the parent company, US based Federal Mogul was acquired by Tenneco in April 2018. Tenneco is now acquiring 25% stake in the Indian company.

The acquiring company had arrived at a valuation of Rs.400/share for the open offer. Thanks to SEBI, it got the valuation done through another independent valuer who arrived at a price of Rs. 608.50, up 50% over Tenneco’s offer price. And that is what the SC has also upheld now.

The company further said the Acquirer is presently reviewing the Order and will evaluate the options available to it after examining the same after which the further course of action will be determined in relation to the Open Offer.

Promoters currently hold 74.98% stake.