Sterling and Wilson opened 11.5% higher at Rs.485 and went on to hit a new 52-week high at Rs.509; it has come off the high and is now trading at Rs.476.

The stock hit a new high today after Reliance Industries, through its subsidiary will acquire a 40% stake in the company through a combination of primary investment, secondary purchase and open offer for around Rs.2850 crore.

Reliance will first acquire 15% in the company by way of a preferential allotment of 29.3 million equity shares or 15.46% post preferential share capital, at Rs 375/share.

Reliance will also acquire 18.4 million equity shares by RNESL from SP group company, equivalent to 9.7% post preferential share capital at a price of Rs 375/share, costing Reliance some Rs.1100 crore.

Reliance will also acquire a 25.9% stake by way of an open offer at the same price though given the current price, which is much higher than the open offer price, there is sure to be a reluctance by shareholders to tender in the shares.

If the open offer goes through, the subsidiary will hold 40% stake in Sterling and Wilson.