Mangalore Chemical and Fertiliser (MCF) is a big mover and shaker on the bourses today. The stock hit an intra day high at Rs.46.50 and is currently up over 9% at Rs.42.90. Volumes are up over 5 times the two weeks average at 11 lakh shares.

The stock is painted this deep green after Zuari Fertilizer and Chemicals acqauired over 1.15 crore  shares or 9.72% stake in MCF at price of R38.40/share. This block of shares was basically sold by SBI which held the shares of MCF as a collateral for loans to KFA.  A total of 2.5 crore shares have been pledged with lenders which means that half of that has been sold.

The consortium of lenders comprising of 14 banks with a combined exposure of R7,000 crore to KFA has started selling shares in USL and MCF offered as collateral by Mallya during its restructuring. More stake sale is expected to happen. Zuari has a minor shareholding and this cannot as of now trigger any open offer but they are sure to hike their stake further. This change of management is being viewed as a positive for MCF.

Meanwhile, the total exposure of lenders to KFA stands at follows:

SBI – Rs.1600 crore

PNB – Rs.800 crore

IDBI Bank – Rs.800 crore

Bank of India – Rs.650 crore

Bank of Baroda – Rs.550 crore

United Bank of India– Rs.430 crore

 Central Bank of India – Rs.410 crore

 UCO Bank– Rs.320 crore

Corporation Bank– Rs.310 crore

 State Bank of Mysore– Rs.150 crore

 Indian Overseas Bank – Rs.140 crore

Federal Bank – Rs.90 crore \

Punjab and Sind Bank – Rs.60 crore  and

Axis Bank– Rs.50 crore