43% Stake in Fame India to be Acquired by Inox, Shares Surge

43% Stake in Fame India to be Acquired by Inox, Shares SurgeFame India managed to lock itself at the upper circuit limit of 5%, hitting a 52-week high of Rs. 48.40 after Inox Cinemas officially announced that it is all set to take over 43% stake in Fame India, a deal which will cost Inox Rs. 66.5 crore.

The announcement came through during peak trading hours on Wednesday, on 3 February 2010, when the stock had closed at the upper circuit limit of 5%, hitting Rs. 46.10 on the BSE. In four consecutive trading sessions, the stock has managed to climb by 21.15%.

Inox currently operates 22 multiplexes with 80 screens, with multiplexes in places like Pune, Vadodara, Kolkata, Goa, Mumbai, Bangalore, Indore, Jaipur, Kota & Darjeeling. As of December 2009, Gujarat Fluorochemicals owned a 64.84% stake in Inox.

Fame India, on the other hand, posted net earnings of Rs. 6.87 crore in December 2009, third quarter, a substantial improvement as compared to the loss of Rs. 3.50 crore posted for the December third quarter of 2008.