The Hindu Business Line : Rain group stocks active on merger plans

Hyderabad-based Rain group counters Rain Calcining and Rain Commodities were active on the BSE before the board of Rain Calcining meets on October 20 to discuss the "options for corporate restructuring of the company and associate company," Rain Commodities Ltd. According to market sources, the group is expected to declare a merger plan of the two companies. Sources close to the development also told Business Line that the group is poised to take over the control of GLC Carbon US Inc, the largest calcined petroleum coke in the world, by acquiring 80 per cent stake now.

Through an earlier deal, the group has already acquired 20 per cent in the US company.

Sources indicated that the merger ratio being proposed is one Rain Commodity share of Rs 10 each for 3.5 of Rain Calcining. The proposed merged entity would have paid-up capital of around Rs 80 crore. It is also rumoured that the combined entity is likely to make fresh placements to City group at a price between Rs 230 and Rs 250. The combined entity with the acquisition will control 30 to 40 per cent market share of global calcined coke market, used primarily for aluminium and steel making.

Rain Calcining on Tuesday finished up 1.72 per cent at Rs 47.15 on the BSE with 12.09 lakh shares changing hands, while Rain Commodities attracted its record trading volume of 1.68 lakh shares on the BSE and closed flat at Rs 195.60.

Jayanta Mallick

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