Mumbai: Ispat Industries plummetted by over 17% in early trade on the Bombay Stock Exchange (BSE) on Tuesday after JSW Steel announced that it will acquire a majority stake in the company through the purchase of shares worth Rs2,157 crore, allotted on a preferential basis.
“The company will subscribe to 10,866,49,874 equity shares of Ispat by way of preferential allotment at a price of Rs19.85 per piece,” JSW Steel said in a filing to the Bombay Stock Exchange.
Nervous investors abandoned the counter following the announcement and the scrip plunged 17.42% to touch an early low of Rs20.65 on the BSE.
On a similar note, Ispat tumbled 17.6% to an early low of Rs20.60 on the National Stock Exchange (NSE).
In the previous trading session, the scrip had gained over 10%.
Meanwhile, JSW Steel surged by 4.59% to touch an early high of Rs1,240 on the BSE.
The BSE 30-share barometer Sensex was trading at 20,039.24, up 150.36 points, at 10:23 am.