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McLeod Russel Limited’s (MRIL) shares are nearing their 52-week high as they hit two straight upper circuits, triggered by a bulk deal. The shares are locked at ₹ 34.25 apiece on the National Stock Exchange (NSE) on Monday. The stock reached its 52-week high of ₹ 35.45 on September 30 last year. 

Carbon Resources (P) Ltd bought 4.95 million equity shares, representing 4.73 per cent of the total equity of MRIL via the open market on Friday. As per bulk deals data, the company bought the shares at a weighted average price of ₹ 28.19 apiece on the NSE.The company’s shares escalated by nearly 42 per cent from ₹ 24.15 apiece in the past two days. 

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McLeod Russel Limited is a tea company promoted by the Williamson Magor Group and promoted by the BM Khaitan family. The promoters own a 6.25 per cent stake in it. The company in its FY22 Annual Report mentioned that they are unable to meet the terms of facilities and loans availed from various lenders, adding that it is in discussion with lenders to restructure the terms of the loans. 

The lenders to the company received a non-binding Letter of Intent for the acquisition of a controlling stake in the company from Carbon Resources on September 16. SBI Capital Markets & ICICI Bank are the lead bankers for the company. The letter provides lenders with an offer for the resolution of the company’s debt. 

Carbon Resources has offered to infuse upfront equity worth ₹ 300 crore and fresh debt worth ₹ 945 crores to resolve the outstanding debt. Further, it has sought a 60-day exclusivity period to conduct due diligence. 

Incorporated in 1991, Carbon Resources is the largest and only fully integrated producer of electrode paste in India. It produces critical carbonaceous raw materials. 

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McLeod Russel Limited is engaged in the business of cultivation, manufacture and sale of tea in domestic as well as international markets. It is one of the largest plantations presently consisting of 33 tea estates located in Assam and West Bengal. 

Written by Simran Bafna


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