Mumbai: Private sector shipping firm Bharati Shipyard on Monday surged nearly 10% on the Bombay Stock Exchange after the company said it will make an open offer for an additional 20% stake in Great Offshore.
Following the announcement, shares of Bharati Shipyard hit its upper circuit at Rs167.10 on the BSE, while Great Offshore was up 5.23% at Rs383 in early trade.
The board of Bharati Shipyard, which already holds a 15% stake in the drilling firm, has approved the acquisition of an additional 20% stake in Great Offshore.
“The purpose of the open offer is to consolidate our investment in Great Offshore. This acquisition will provide enhanced stability to the existing management in Great Offshore and maximize shareholder value for both companies,” Bharati Shipyard managing director PC Kapoor said.
The acquisition would be made through Bharati’s wholly-owned subsidiary Natural Power Ventures, it said in a filing to the BSE.
Last month, Bharati Shipyard acquired 55,33,786 shares representing 14.89% stake in Great Offshore at a price of Rs315 per share, following an invocation of shares which the promoters of the offshore drilling firm had pledged with its subsidiaries.