Maithan Alloys to buy 10 lakh NSE shares at ₹3,240 each

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Maithan Alloys, manufacturers and exporters of niche value-added manganese alloys, said on Tuesday that it plans to acquire 10 lakh shares (0.202 per cent) of the National Stock Exchange. In a disclosure to the stock exchanges, the company said it entered into an agreement for the purchase of 10 lakh shares for ₹324 crore, making the per-share value ₹3,240.

“The shares are proposed to be acquired through secondary market purchase and shall form part of the current investment of Maithan Alloys Limited with a view to reaping the long-term and short-term investment benefits,” it said in the disclosure.

However, in-principal approval from the NSE is required, it said.

NSE is involved in operating trading platforms for equities, derivatives, and other financial instruments. It is a leading stock exchange in India and has a dominant position with a market share by total turnover of 93 per cent in the equity cash segment, 99 per cent in the equity futures and options segment, 71 per cent in the currency futures segment, and 99 per cent in currency options trading.

Maithan Alloys has been buying stocks of various companies, especially those in the public sector undertaing from the secondary market this quarter. The companies are Coal India, Bank of Baroda, Bank of Maharashtra, Union Bank of India, Jio Financial, SBI, GAIL India, Hudco, Natco Pharma, RITES, and Canara Bank.

The firm so far has spent ₹774.60 crore to buy various companies, with NSE being the largest at ₹324 crore.

For the September quarter, the company posted a profit of ₹65.59 crore on revenues of ₹442.29 crore. For FY23, it posted a PAT of ₹426.51 crore and revenues of ₹2,907.56 crore.

Shares of Maithan Alloys closed 0.38 per cent higher at ₹1,155.45. on the BSE.