BackZuari Agro Chemicals, Deepak Nitrite looking to raise funds through QIP
Zuari says the proceeds from the QIP shall be utilized for revamp of existing manufacturing capacities and towards strategic investments
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Mumbai: Zuari Agro Chemicals Ltd and Deepak Nitrite Ltd on Thursday separately announced plans to raise ₹ 400 crore and ₹ 200 crore respectively through qualified institutional placements (QIP)
“The proceeds from the QIP shall be utilized for substantial revamp of existing manufacturing capacities and towards strategic investment/acquisitions," Zuari Agro said in a filing to stock exchanges. Deepak Nitrite did not mention the purpose for which it will use the funds in its filing.
Saroj Kumar Poddar-controlled Zuari Fertilisers and Chemicals Ltd and Zuari Agro Chemicals Ltd have been engaged in a battle with Deepak Fertilisers and Petrochemicals Corp. Ltd for control of Mangalore Chemicals and Fertilizers Ltd.
Both Deepak Nitrite and Deepak Fertilisers are part of the same corporate group, promoted by C.K. Mehta.
Last month, the two firms controlled by Poddar, revised the size of their open offer for shares in Mangalore Chemicals and Fertilizers Ltd to 36.56% from the earlier 25.9% as an invitation to a rival bidder, Deepak Fertilisers, to cash out, Mint reported on 30 December.
This meant that Poddar’s Adventz Group will have to spend up to ₹ 398.28 crore instead of the ₹ 282.2 crore offered earlier to buy shares in the UB Group-promoted Mangalore Chemicals, according to a filing to BSE. Under the revised offer, the two Zuari companies have offered to buy 43.3 million shares of Mangalore Chemicals at a price of ₹ 91.92 a share.
On 4 December, a voluntary open offer was launched by companies belonging to Poddar’s Adventz Group without UB Group’s associate companies.
The increased size of the offer came a month after a bidding war for shares in Mangalore Chemicals ended inconclusively, with Deepak Fertilisers managing to raise its stake to around 31.25% in the company.
UB Group chairman Vijay Mallya had joined forces with Kolkata-based Poddar to launch a counter-bid against Deepak Fertilisers to retain control of Mangalore Chemicals. Currently, the Mallya-Poddar combine holds around 38% in Mangalore Chemicals. Deepak Fertilisers hasn’t yet made a counter offer.
On 21 January, Poddar Developers Ltd, a Mumbai-based real estate firm had announced that is has raised ₹ 125 crore through share sale to institutions.
Shares of Zuari Agro Chemicals Ltd closed the day at ₹ 286.65, up by 2.59%, while shares of Deepak Nitrite Ltd closed at ₹ 81.35, up by 0.18%. The benchmark Sensex closed at 29,006.02 points, up by 0.41%.
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