Kirloskar Oil Engines hits 52-week high; stock soars 18%

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Kirloskar Oil Engines soared 18% to Rs 450, also its 52-week high on the BSE in early morning trade, on reports that the Cummins Group is eying controlling stakes in auto parts & equipment Company.

The Cummins Group, one of the world’s largest manufacturers of engines and power generation products, is in talks to acquire a controlling stake in Kirloskar Oil Engines in a deal valued at over $500 million through one of its Indian subsidiaries, Livemint reported quoting two people aware of talks between the companies.

At 09:28 AM; Kirloskar Oil Engines Stock Price was trading 12% higher at Rs 426 on the BSE. A combined 142,976 shares changed hands on the counter on the BSE and NSE so far.

Cummins India was up 3% at Rs 900, after hitting high of Rs 906 in intra-day trade. On comparison the S&P BSE Sensex was trading marginally higher by 0.07% at 33,962 points.

Essar Energy on Tuesday announced it had completed an additional payout of Rs 891 crore to Essar Oil’s public shareholders. The payout was due to shareholders on account of the sale of Essar Oil’s assets to a Rosneft-led consortium in August this year.

"Essar Energy Holdings (EEHL) and Oil Bidco (OBML), both incorporated and managed under the laws of Mauritius, on 11 December 2017 disbursed Rs 891 crores to erstwhile public shareholders of Essar Oil. This translates to a price of Rs 76.41 per share," Essar group said in a statement today.

In August, Essar Group completed Rs 86,000 crore-deal involving the sale of Essar Oil by EEHL and OBML to Rosneft and a consortium led by Trafigura and UCP.

"This payout is over and above the price of Rs 262.80 per share paid to shareholders at the time of delisting. Accordingly, the total payout to public shareholders has increased from Rs 3,064 crore (at the time of delisting) to Rs 3,955 crore," the company said in its statement. The company was delisted in 2015.

Cummins India was up 3% at Rs 900, after hitting high of Rs 906 in intra-day trade. On comparison the S&P BSE Sensex was trading marginally higher by 0.07% at 33,962 points.

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