Sharp India locked in 20% UC

Sharp India was locked on the 20% upper circuit at Rs.48.35, clocking volumes of over 6.5 times. Its 52-week high and low stands at Rs.89.50 and Rs.34.70 respectively.

The stock is up unconfirmed reports that Foxconn is eyeing buying out Sharp Corporation and has offered around $5.3 billion. Foxconn is reportedly offering more money for Sharp is also willing to shoulder all of its debt.

Wall Street Journal has reported that Sharp is planning to review a competing offer from Innovation Network Corp. of Japan (INCJ), a government-backed investment fund. It wasn’t clear whether this bid  from INCJ bid would require Sharp’s main creditors to swap some of their debt for equity. Japanese officials have expressed concern about letting Sharp come under foreign control, citing the company’s technology in display panels.

Naturally, a change in the ownership of the parent company means it could affect Sharp India too and there is anticipation of an open offer, which is usually seen in such cases.