Monnet Ispat raises offer price for Orissa Sponge to Rs 370

Jayanta Mallick Updated - July 06, 2012 at 07:10 PM.

Monnet Ispat & Energy Ltd on Friday announced an increase in the open offer price for Orissa Sponge Iron & Steel Ltd (OSIPL).

Together with two promoter entities (as persons acting in concert) of OSIPL, Monnet raised the offer price to Rs 370 a share from Rs 310 announced earlier.

This is a mark up of Rs 10 a share over the nearest rival offer in a three-corner battle for the loss-making company’s control.

Monnet is seeking to buy up 20 per cent or 61 lakh shares (of Rs 10 each) of OSIPL which has iron ore and coal assets.

ICICI Securities is the manager to the Monnet’s offer.

OSIPL stock, however, closed the Friday’s trading at Rs 378.05 on BSE with 58,077 shares changing hands.

In June, Bhushan Energy Ltd, a second suitor for OSIPL, had thrown down the gauntlet once more after Bhushan Power & Steel Ltd renewed its battle cry.

So far Monnet Ispat group backed the current promoters (holding 49.12 per cent) of OSIPL against the bids from two Bhushan factions.

Bhushan Power and Bhushan Energy, according to market circles, now need to revise their respective offers upwards to stay in the contention.

jayanta_mallick@thehindu.co.in

Published on July 6, 2012 10:07