Stocks of Future Supply Chain Solutions Limited (FSC) gained 6 per cent to Rs 529 intra-day on the NSE on Wednesday after the competition watchdog Competition Commission of India (CCI) approved Nippon Express’ acquistion of 22 per cent stake in the company for Rs 641 crore.
In a statement to the exchanges, Future Supply Chain said, “The proposed combination pertains to the acquisition by Nippon Express of about 22 per cent of the total issued and paid up share capital of Future Supply Chain on a fully diluted basis.” READ THE FILING HERE
In September, the company had informed the exchanges that Nippon Express, Japan’s leading global logistics player, will acquire 22 per cent stake through a combination of primary issuance and secondary purchase from an existing investor. As part of this transaction, FSC will issue 3.78 million shares to Nippon Express at a price of Rs 664 per share.
“Through this primary issue Nippon Express will hold 8.6 per cent stake on a fully diluted basis and FSC will raise around Rs 252 crore for funding its near-term growth plans,” the company had said in a regulatory filing.
Further, Nippon Express had informed FSC that it had entered into a share purchase agreement with institutional shareholder(s) of FSC to acquire 5.86 million shares representing 14.6 per cent of existing share capital.
At 9:53 AM, the stock was trading 1.75 per cent higher at Rs 507.90 as compared to a 0.4 per cent gain in the benchmark Nifty50 index. Over 33,400 shares had changed hands on the NSE and BSE combined, so far. In the past month, the stock has climbed 3.8 per cent as compared to a 0.5 per cent gain in the Nifty50 index.