Shares of McLeod Russel (India) hit a high of 10% in early trade on September 21, a day after media reports said Carbon Resources had expressed interest in acquiring the debt-laden company.

The Kolkata-based electrode paste maker has sent a non-binding letter of intent to Mcleod Russel’s lenders to acquire a controlling stake in the company, which is part of the financially strained Williamson Marg Group. Media reports added that Carbon Resources acquired a 5.03% stake in McLeod from the open market on September 16.

The media reported that the company proposed to inject upfront equity worth Rs 300 crore and debt of Rs 945 crore to settle Mcleod Russel’s outstanding debt. The tea maker currently has debts of over Rs 1,700 crore.

The stock was trading at Rs 41.10 on the BSE at 9:51 am, up Rs 3.70, or 9.89%. There are 1,444,570 pending “buy” orders, and no sellers are available. The stock has hit a 52-week high of Rs 41.10.

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McLeod Russell, in a clarification to the exchanges, said that the company had not received any communication or document regarding such acquisition, except a statutory disclosure from CRPL, Securities and Exchange Board of India (substantial acquisition of shares and takeovers) Regulations, 2011, informing the company regarding the purchase of 52,50,000 (5.03%) equity shares of the company through email dated September 19, 2022.