ICRA shares up 20 pct on Moody's open offer

Written by fe Bureau | Mumbai | Updated: Feb 24 2014, 20:23pm hrs
Shares of ICRA gained 20% intra-day on Monday after Moody announced a conditional open offer to acquire an additional stake of 26.5% in the company for a consideration of Rs 530 crore.

The shareholders would receive Rs 2,000 for their shares. The open offer price is priced at 25.45% premium to Friday's closing of Rs 1,594.20.

Currently, Moody holds 28.51% stake in ICRA.

After market trading hours on Friday, Moody's said that it would acquire an additional 26.5 per cent stake in the company through open offer at an open offer price of Rs 2,000 a share.

Reacting to the development, shares of ICRA Ltd opened on a bullish note at Rs 1,858, on the BSE. The stock then gathered further momentum and surged 19.99 per cent to an intra-day high of Rs 1,913 on the bourse.

Similar movement was seen on the National Stock Exchange as well where the stock opened at Rs 1,888, then jumped 19.96 per cent to an intra-day high of Rs 1,905.05 a share.

Moody's plans to acquire up to 2.65 million shares in ICRA, amounting to 26.5 per cent of the companys equity. If the open offer gets full acceptance, the shareholding of Moody's in ICRA Ltd would increase to 55 per cent.

The offer is being made by Moodys Singapore Pte Ltd, Moodys Investment Company India Private Ltd and Moodys Corporation. (With agency inputs)