Personal care products maker Emami has more tha doubled its offer price for acquiring a 20-per cent stake in herbal and ayurvedic products maker Zandu from Rs7,315 per share to Rs15,000.
Emami shares plunged to Rs274, down 4.84 per cent on the news, while Zandu was quoted at Rs16,728.30, down 5 per cent in BSE's morning trades.
In a regulatory filing Emami said, "Emami has revised the offer price in respect of the public offer made by it for acquisition of equity shares of the Zandu Pharmaceutical works from Rs7,315 to Rs15,000 per share."
Emami says it would make suitable arrangements for issuing corrections to public announcement in all newspapers in which the original public announcement was made, the filing added.
In May this year, the Emami Group bought out the entire 23.6-per cent stake of one of the two promoter groups of the Rs150-crore Zandu, the Vaidya family for Rs6,900 per share, taking its stake to 27.5-per cent, having started out with a 3.9-per cent shareholding through market purchases. (See: Emami buys 27.5 per cent in Zandu; to make open offer)
In early June it made an open offer to Zandu shareholders to acquire 161,280 fully paid-up equity shares of Rs100 each representing 20 per cent of the paid up equity share capital of Zandu. (See: Emami makes open offer for Zandu Pharma at Rs7,315 a share)
Zandu is a strong brand with products such as Zandu Balm, Zandu Special Chyawanprash, Kesri Jeevan while Emami's products include the Himani range brands such as Fair & Handsome cream and Navratna oil.
The Rs1,600 crore Emami Group is present in niche segments where there is less competition from the multinational giants. The group is also present in segments such as paper and newsprint, ball pen tips, hospital, bio diesel, edible oil, cement, real estate and retail.