Even before the announcement of the open offer (that was made today), volumes surged in Indo Gulf Fertilizers.

Perhaps the market had got wind of the offer yesterday itself. For huge volumes preceded the offer announcement. This may be a matter for the stock market regulator, Sebi, to take up.

The A V Birla group, through TGS Investments & Trade Private Limited, has announced an open offer to acquire 20% stake in Indo Gulf Fertilizers (IGFL) at a price of Rs 75 per share, which is at a 27% to the scrip's ruling market price.

The open offer by the AV Birla group to acquire the additional 20% stake in IGFL is aimed at consolidating holdings (by promoters). The A V Birla group currently has a 31.5% stake in IGFL.

Following the announcement of the open offer, IGFL's share price surged today. The stock soared 14.3% on NSE by mid-afternoon trades to Rs 67.50. The scrip registered good volumes, at 6.22 lakh shares, by about 13:54 IST.

Interestingly, just a day ahead of the announcement (Monday, 23 June 2003), IGFL gained on the bourses on the back of heavy volumes. The stock gained 3.5% to Rs 59.05 on NSE on Monday . This rise was accompanied by volumes of 7 lakh shares on NSE. This happens to be the highest daily volume recorded by the stock from the day the restructured IGFL was listed on the bourse on 31 March 2003.

Over the 58 trading sessions to Friday 20 June 2003 (since listing), average daily volumes were around 1.08 lakh shares. On Monday, volumes were also commendable, at 5.9 lakh shares, on BSE. Average daily volumes have been around 1.09 lakh shares on BSE since listing. The stock gained 3.7% on NSE on Monday to Rs 59.15.

IGFL has been on a sustained rise on the bourses ever since the restructured IGFL was listed in end March 2003. The restructured IGFL was listed on BSE on 27 March 2003 and on NSE, on 31 March 2003. The scrip surged 93.3% to a high of Rs 60.05 on 5 June 2003 from its listing price of Rs 31.05 on BSE on 31 March 2003. Over the next few days, the stock hovered in a band of Rs 55-59.

IGFL came into existence after a scheme of restructuring involving the de-merger of the the copper and fertilisers business of Indo Gulf Corporation (IGCL). The fertiliser business of the erstwhile IGCL was transferred to IGFL, while the copper business was de-merged in favour of Hindalco Industries (HIL).