Kalindee Rail chugs into green
Kalindee Rail is doing well today, up almost 5% at Rs.76, with very good volumes at 1.45 lakh shares. Market cap stands at Rs.94 crore.
A takeover battle of sorts seems to be happening in Kalindee Rail. The company on Saturday, 13th July announced that it was allotting 41 lakh shares to Texmaco on a preferential basis. Post this allotment, the holding of Texmaco will stand at 24.90% and the shares have been allotted at Rs.65/share.
This preferential allotment has been made by Kalindee to Texmaco to avoid a hostile takeover bid from Jupiter Metaisl which too had announced on 10th July a voluntary open for 26% stake at Rs.65/share. Pots this offer, Kalindee had held a Board meet on 11th July to try and thwart this takeover by Jupiter and came up this alternate of issuing shares to Texmaco.
Jupiter Rail is miffed and plans to take legal action, challenging Kalindee’s decision on two grounds – firstly, the company did not give a 2-dat notice before convening the Board meeting and secondly, it has violated SEBI norms by deciding to issue 24.90% stake for Texmaco Rail when there is an open offer already existing,