The stock price of IFCI (IFCI@IN) shot up by 13% today, presumably on rumors that International Finance Corporation (IFC) may buy a strategic stake in IFCI. See, for example, the following:
Suppose that the rumor was true. I have no clue, but let’s just suppose that it was true.
That is, suppose that IFC bought a strategic stake in IFCI.
Further suppose that the stake was in excess of 15%.
Further suppose that the stake was bought at a premium to today’s closing price of 106.80 at NSE, which incidentally is the highest price the stock has seen in more than a decade.
Then, under India’s Takeover Code, what will (or won’t) happen and why?