Tilkanagar Industries shares surge 20 per cent on buzz of Allied Blenders stake buy

Tilaknagar Industries shares hit upper circuit on Monday on reports that Kishore Chhabria-controlled Allied Blenders & Distillers has entered the final round of negotiations to acquire a controlling stake in the company.

Tilaknagar Industries is one of the renowned Indian-made foreign liquor players with presence across India. The company manufactures, markets and sells more than 40 brands across all price points. It is the owner of Mansion House brandy.

Shares of the company jumped 19.77 per cent to Rs 21.20 in morning trade.

According to reports, Chhabria and Tilaknagar CMD Amit Dahanukar are expected to meet in London on July 6 to finalise the deal, which could involve the Dahanukar family selling a part of its stake and Tilaknagar Industries issuing shares on a preferential basis to Chhabria.

The promoters holding in the company stood at 54.96 per cent while Institutions and Non-Institutions held 0.89 per cent and 44.15 per cent, respectively.

Meanwhile, the BSE Sensex was at trading at 27,833.50 at 11:18 am, down 0.92 per cent against its previous close.