Pune-based Deepak Fertilisers and Petrochemicals Corporation Ltd has further reduced its holding in Mangalore Chemicals and Fertilizers Ltd (MCFL) by selling another 5.18 per cent stake in the company for about Rs 53.42 crore (approximately $8.6 million) on Wednesday.
This comes on the back of the firm selling 12 per cent stake in MCFL for approximately Rs 123 crore ($20 million) on Monday.
It held 28.47 per cent stake in MCFL as of March 31, 2015. Following the latest transactions, Deepak Fertilisers holds a little over 11 per cent stake in MCFL.
The development comes ahead of the launch of the proposed open offer for MCFL by rival Zuari Fertilisers and Chemicals Ltd on April 21.
Previously, Deepak Fertilisers had sold 2.2 per cent stake in MCFL in January just weeks after buying additional stake in the firm in an open offer.
It had also decided not to make a counter bid to Saroj Kumar Poddar-led Adventz Group’s voluntary open offer for 36.56 per cent stake in MCFL.
This had virtually sealed the battle in favour of Adventz after an intense takeover struggle.
Currently, UB Group owns a 22 per cent equity stake and Saroj Poddar's Adventz group holds 16.47 per cent stake.
MCFL is a fertiliser maker with products like urea, di-ammonium phosphate, muriate of potash, granulated fertilisers, micronutrients, soil conditioners and specialty fertilisers. It is particularly strong in the southern region of the country.
On Thursday, shares of MCFL were trading at Rs 87.55 each, up 0.52 per cent on BSE in weak Mumbai market.
(Edited by Joby Puthuparampil Johnson)