Asia Bizz: Ispat Industries ltd., Bombay, has plummeted by almost 17% at the Bombay Stock Exchange market on Monday, as JSW industries announced that it will be taking over the company by purchasing majority of its shares. JSW stated that it will be purchasing around 10,866,49,874 shares which will be on preferential basis and will cost around 2,157 crores, this statement was made by the company during a filing at the Bombay Stock Exchange.
It was good news for the company as it will be taking over Ispat, but for the investors it was indeed a nervous breakdown. The Ispat market started to tumble at the stock exchange and the shares shed almost 17% in just one day, falling to an all time low of Rs.20.
Earlier before the announcement of the takeover, the company registered a 10% climb in the market and as a result there was stability in its shares. JSW’s just took off and climbed to a high of Rs. 1,240 per share, which is a positive climb by 4.59%. The company is expecting to see its share of profit from the first year of the acquisition itself.