Two Gujarat-based chemicals companies, Bodal Chemicals Ltd and Kiri Industries Ltd, on Monday, denied having transacted any stake in Bodal Chemicals, with the latter also threatening legal action against those who “misused” office stationery to spread the rumours.

Apparently, somebody photocopied the office letterhead on August 27 and sent out the press release the same day about the transaction.

No board meeting

Mr Suresh Patel, Chairman and Managing Director, Bodal Chemicals, told Business Line on Monday that somebody seemed to have misused office stationery in issuing a press release that triggered rumours to the effect that Bodal Chemicals was divesting its single super phosphate (SSP) plant in Vadodara district to Kiri Industries for a cash consideration of Rs 640 crore.

“We have held no Board meeting in this regard nor taken any decision for any divestment of the said plant and have also informed the bourses accordingly on Monday. We are contemplating action in the matter against the mischief-makers by lodging a case with the police and the cyber crime branch,” he added.

Both Bodal Chemicals and Kiri Industries have, separately, informed the stock exchanges, denying the transaction.

Earlier, the purported press release created a flutter in business circles as it claimed that the SSP plant, set up with an investment of Rs 31 crore in 2008 with a 14 lakh tonne capacity, had brought in huge cash of Rs 640 crore for Bodal Chemicals. The deal, it claimed, would make it a zero-debt company and still leave plenty of cash with it.

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