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 legal action against those who “misused” office stationary to spread the rumors.

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

Mr Suresh Patel, Chairman and Managing Director, Bodal Chemicals, told Business Line on Monday that somebody seems to have misused office stationary in issuing a press release which triggered the rumors 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 just Rs 31 crore in 2008 with a 14 lakh metric tonne capacity, had brought in a huge cash of Rs 640 crore for Bodal Chemicals. The deal, it claimed would it a zero-debt company and still leave plenty of cash with it.

comment COMMENT NOW