On Monday, Camlin Fine Sciences stock soared 14% in the morning trade after Infinity Holdings and promoter Ashish Dandekar introduced an open offer for an extra 26% stake in the speciality chemicals firm at Rs 160 a share with a premium of over 5% to previous close.

At 11:23 am, the share traded 9.3% higher at Rs 166.3 on the BSE.

Infinity Holdings and its subsidiaries held a 23% stake, while Dandekar held 9.44% of its stake as of December 2022.

After an open offer, Infinity Holdings, along with Dandekar, will hold 9.55 crore equity shares together, signifying 55.76% of the voting share capital of Camlin Fine Sciences. 

Mumbai-based CFS has tasks across Asia-Pacific, Europe, and the USA.

According to SEBI, an open offer is made by a company that acquires shares from the target company’s shareholders and invites them to sell shares at a particular price. It aims to offer an exit option to the shareholders since there is a change in substantial share acquisition.

In the past month, Camlin Fine Sciences’ stock has rallied over 20% amid earnings optimism after the commissioning of its ethyl and methyl vanillin manufacturing composite plant commenced on January 22, 2023. This plant will likely provide the firm with a stable source of revenue and EBITDA.

In its latest earnings in February, the company is operating the plant above 50% capacity with a plan to ramp it up to 100% by the FY23 end.

The company stated combined sales at Rs 387.84 crore in December 2022, up about 2% YoY, while net profit fell 16% YoY to Rs 24.04 crore.