Mumbai: Shares of Andhra Pradesh Paper Mills surged by about 20% to hit the upper limit on the Bombay Stock Exchange (BSE) on Wednesday after the company announced that US-based International Paper would buy a majority stake in the Indian firm.
The scrip of Andhra Pradesh Paper Mills, or AP Paper Mills, advanced by 19.99% to touch the upper circuit at Rs236.15 on the BSE.
Similar movement was witnessed on the National Stock Exchange (NSE), with the counter hitting the upper circuit at Rs236.95, up 20.01% from its previous close.
International Paper, the US-based paper and packaging major, entered into agreements with the Kolkata-based L. N. Bangur Group on Tuesday to buy a 53.5% stake in AP Paper Mills for about $257 million.
International Paper will also launch a mandatory public tender offer to acquire up to an additional 21.5% of the outstanding shares of AP Paper Mills for approximately $104 million in cash.
In terms of volume, about 29,831 shares got traded on the NSE, while about 9,844 changed hands on the BSE.
Meanwhile, shares of other paper firms such Ballarpur Industries, JK Paper and West Coast Paper Paper Mills shot up in the range of 14-19% on the BSE, which analysts attributed to ‘sentimental’ buying in the wake of the buyout.
The broader Sensex was trading at 19,309.83 points, up 189.03 points, at 11:21 am on Wednesday.