Market movers: Eureka Forbes launches open offer at 58% discount; stocks tanks 5%

Last year in September, Advent International acquired a majority stake in Eureka Forbes, the consumer durables flagship company of Shapoorji Pallonji Group, for Rs 4,400 crore. Following which the stock was delisted from exchanges.

The manager of the open offer said Advent will buy shares at a maximum price of Rs 210.15 per share. It will buy 5,03,04,603 shares from existing shareholders.

The stock tanked 5 per cent on BSE, to settle at Rs 470.25.

Opportunist?

There are some companies that have been facing mounting pressure of price hikes given sharp increases in raw material prices. On the other hand, there are some that are making the most of their competitor’s plights.

One such name is JK Paper. JK Paper manufactures virgin paper, made directly from pulp of wood. It is different from GRade B and C papers made from waste paper. According to analysts tracking the company, it has taken a price hike even when it has not seen any significant raw material pricing pressure. It is just taking advantage of the inflation in raw materials used in Grade B and C papers.

The shrewdness of the company has attracted a lot of buyers on Dalal Street. Shares of JK Paper has ballooned 33 per cent in the last one month even when most of the markets has struggled. On Wednesday, it rose 10 per cent.

“With demand now crossing pre-Covid levels and favourable pricing scenario for Grade A mills, we expect significant improvement in profitability for JK Paper, West Coast Paper and Andhra Paper over coming few quarters,” said Centrum Broking.

Boost dose

Unichem Laboratories said it has received ANDA approval for its Nebivolol Tablets 2.5 mg, 5 mg, 10 mg, and 20 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Bystolic (nebivolol) Tablets 2.5 mg, 5 mg, 10 mg, and 20 mg, of Allergan Sales, LLC.

Nebivolol Tablets are indicated for the treatment of hypertension. The product will be commercialized from Unichem’s Ghaziabad Plant.

Following the announcement, the stock climbed 3 per cent.