K.S. Oils, the debt-laden edible oil maker, gained about 10 per cent to Rs 12 on unconfirmed reports that a global commodity major is eying the company for a possible takeover. The company's shares hit a high of Rs 13 and low of Rs 11.40 with substantial increase in traded volume at 2.94 crore shares on Tuesday against 75 lakh shares traded the previous day.

However, the company in a statement said it has not entered into any concrete agreement with any party for sale of its business so far.

KS Oils has appointed Bank of America Merrill Lynch and PwC for a share sale recently. Promoters of the company currently own 13.06 crore shares (35 per cent) of which 10.90 crore shares have been pledged.

With the shares trading close to 52-week low, many financers have been offloading the shares in the open market. The share had plunged to its 52-week low of Rs 7.70 on August 17.

Meanwhile, a Goldman Sachs fund Goldman Sachs Investments Mauritius has picked up 29.88 lakh shares of KS Oils through bulk deals on Tuesday following a purchase of 21.46 lakh shares at Rs 10.92 a share on Monday.

As of June quarter, some of the major shareholders in the company include NSR Direct Pe Mauritius LLC (9.48 per cent), Baring Pvt Equity Asia III Mauritius Holdings (5.05 per cent), Siva Trade Consultancy (4.82), Ratha Infrastructure (4.26 per cent), Deutsche Securities Mauritius (2.11 per cent) and Morgan Stanley Mauritius (1.89 per cent).

Shareholders of the company on Monday approved a proposal to raise $150 million through a GDR issue and increase the authorised capital to Rs 90 crore from Rs 60 crore.

The company commands a market share of 11 per cent in the overall mustard oil segment with 25 per cent in branded mustard oil. It employs over 3,000 employees in six manufacturing plants, marketing offices and plantations in India, Malaysia, Indonesia and Singapore.

Related Topics
comment COMMENT NOW