According to sources, Deepak Fertilisers, which had a 25.31% stake in Mangalore Chemicals, has bagged around 6% stake through the open offer. That means the Mehta-led company now has about 32% stake in MCF, which is less than around 38.4% stake held jointly by Mallya and Zuari Group chief Saroj Poddar.
Through the open offer, which concluded on Monday, Mallya along with Poddar, got only 48,000 shares as their open offer price was much lower than that of Deepak Fertilisers.
While Deepak Fertilisers had revised its final offer to R93.60 per share last month in order to buyout an additional 26% stake in MCF, Poddar, who teamed up with UB Group chairman Mallya, had raised the offer price to R81.60 a share.
Market analysts observe that even its offer price per share was R12 higher than the offer price by Zuari along with the UB Group, Deepak Fertiliser failed to get the targeted additional stake as the market price of MCF was hovering above its open offer level.
MCF shares rallied during the open offer period and remained above Deepak Fertilisers open offer price as minority shareholders were expecting a higher offer price down the line. So they were reluctant to sell shares. That is why Deepaks open offer failed, Ravi Shenoy, assistant vice-president (Mid-cap Research), Motilal Oswal Securities, told FE.
Now, it would be interesting to see Deepaks next steps, Shenoy added.
The open offers started on October 1 after the Competition Commission of India (CCI) cleared the offers launched by both Zuari Group firms and Deepak Fertilisers.
Zuari Fertilisers and Chemicals (ZFC) holds more than 16% stake in Mangalore Chemicals and the promoter United Breweries (UB) Group has a shareholding of above 22%.