Shares of Esab India Ltd witnessed a wild swing following alerts on TV screens that the UK Listing Authority had approved the takeover of its parent company.
However, the scrip within minutes retraced from its high.
Esab India informed the exchanges that its parent company Charter International Plc has informed that the scheme document of the Colfax offer has been published and posted to Charter's shareholders on October 18.
Charter has also informed that the prospectus relating to the new shares of common stock to be issued by Colfax in connection with the acquisition has been approved by the UK Listing Authority and will also be posted to the shareholders.
Apparently, this raised expectations that the Esab India shareholders also may be offered share buyback and the counter witnessed frenzied trading. The share price shot over 7 per cent on the BSE and the NSE and from a low of Rs 503 on the NSE and Rs 504.10 on the BSE, it jumped to a high of Rs 562 on the NSE and Rs 561.80 on the BSE.
But in a short while, the share price retraced to Rs 519 on the BSE and Rs 520 on the NSE.
While the trading volume on the NSE was about 1.49 lakh shares around 12.50 pm, it was a little over 77,000 shares on the BSE. The reasons for the share price diving are not known immediately.