Mangalore chemical & fertilizers ltd., a profitable concern of Vijay Mallya, is currently under takeover competitive bidding process! Deepak Fertilizers and Zuari-UB group combine are the two parties involved in this bidding war to acquire stake.
Initialy Deepak fertilizer provided a bid for acquiring rest of the stake from shareholders at 68.55. Shares of MCFL was trading at around 74 rupees. Knowing the competitiveness of the situation, i went on to purchase share even at 74. Vijay Mallya wouldn’t like to lose his one successful enterprise. For both Zuari and Deepak fertilizers, this company would give them strong South Indian entry. Also, these two entities where involved in purchasing the share right since 2012! So i evaluated a decent profit as there is a competitor, who doesnt want to lose out his valued opportunity! The competitive bidding just got fiercer with Zuari rising the offer price to 81.6 and Deepak raising it further to 93!! The share price too reflected the same! I am currently awaiting the move from Zuari before taking a decision to sell or hold!