Camlin Fine Sciences stock soared 14 percent in the morning trade on April 17 after Infinity Holdings and promoter Ashish Dandekar launched an open offer for an additional 26 percent stake in the specialty chemicals firm at Rs 160 a share, implying a premium of over 5 percent to previous close.
At 11.23 am, the share was trading 9.3 percent higher at Rs 166.3 on the BSE.
Infinity Holdings along with its subsidiaries held 23 percent stake, while Dandekar held 9.44 percent stake in the company, as of December 2022.
Post the open offer, Infinity Holdings along with Dandekar will together hold 9.55 crore equity shares representing 55.76 percent of the voting share capital of Camlin Fine Sciences, the company told exchanges.
The announcement coincided with Dandekar, who is also the managing director, roping in Belgium-based co-promoters Ackermans & van Haaren and funds advised by Convergent Finance LLP to join him as CFS co-promoters.
Mumbai-based CFS has operations across Asia-Pacific, Europe and the Americas.
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According to the Securities and Exchange Board of India (Sebi), an open offer is made by a company that is acquiring shares to the shareholders of the target company, inviting them to sell their shares at a particular price.
The purpose of an open offer is to provide an exit option to the shareholders since there is a change in control or substantial acquisition of shares.
Camlin Fine Sciences' stock has rallied over 20 percent in the past month on the back of earnings optimism after the commissioning of its vanillin plant.
The company’s ethyl and methyl vanillin manufacturing composite plant commenced its commercial production on January 22, 2023. This plant, according to some analysts, is expected to provide a steady source of revenue and EBITDA to the company.
In its latest earnings conference call in February, the company said is currently operating the plant above 50 percent capacity with a plan to ramp it up to 100 percent by the end of FY23.
Analysts said that continued elevated energy cost in the Europe, maintenance shutdown of European Union and de-stocking had impacted the company’s December quarter earnings.
The company reported consolidated sales at Rs 387.84 crore in December 2022, up about 2 percent YoY, while net profit slumped 16 percent YoY to Rs 24.04 crore.
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