According to StockMarketsReview.com, shares of India-based tile maker Bell Ceramics Ltd. rose by the daily 5% upper limit on Monday after the company said that one of its promoters is planning to sell his entire shareholding of 62% in favor of Orient Ceramics & Industries Ltd.
Orient Ceramics, another large tile maker, said it had entered into share purchase agreement with Bell Ceramics to acquire 76,59,925 equity shares, or 62.92% voting right. Orient Ceramics is the pioneer in manufacturing of ultra vitrified tiles in India.
Both companies are traded on the Bombay Stock Exchange. Bell is also traded on the National Stock Exchange of India.
The company said it would also make an open offer to the shareholders of Bell for the acquisition of up to 24,34,762 shares or 20% of voting rights.
Bell Ceramics has been incurring losses for the past several quarters due to increase in input costs.
Orient Ceramics was incorporated for the manufacture of ceramic tiles. It manufactures a wide range wall and floor tiles under brands Orient, Stiler and Europa.
Bell Ceramics has a production capacity of 14,450,000 square meters of ceramic glazed floor and wall tiles. In 2009, Bell Ceramics produced 12,183,095 square meters of tiles.