The Hindu Business Line : Petron Engg hits upper circuit on stake sale news

Mumbai June 19 The shares of Petron Engineering and Construction Ltd rose 19.99 per cent on Tuesday and hit the upper circuit limit of Rs 227.15, on news that Kazakhstan-based oil and gas services company, KazStroyServices Plc, has entered into an agreement with the shareholders of Petron to buy stake in Petron Investments Pvt Ltd (PIPL).

The latter is the holding company that has 52.22 per cent stake in Petron Engineering.

The total traded quantity of shares was 10,05,792 compared to the two-week average of 1,85,227 shares.

Amritha Sharanya Leasing and Investments Pvt Ltd (ASLI) and SRA Finance & Investments Pvt Ltd together hold 80 per cent of Petron Investments.

They have sent letters regarding the transfer of their shareholding to the Kazakh firm.

According to the company, ASLI and SRA have received around Rs 46 crore each for 21,095 and 7,21,530 shares respectively.

The remaining individual shareholders have also entered into a share purchase agreement with KazStroy to sell their stake.

On whether KazStroy plans to delist Petron Engineering, Mr Naresh Shah, Company Secretary, said that it was unlikely because 36.86 per cent of the company comprises outside holdings, which would be difficult to acquire.

He added that since the company was a listed one, KazStroy would have to make an open offer to the shareholders now.

The stock of the company has risen over 60 per cent month-on-month.