5% is the upper limit for the stock. 3.5 lakh shares changed hands in the counter on NSE by mid-morning trade. There were outstanding buy orders for a huge 47.99 lakh shares at the upper limit on NSE.

As per reports, the di-ammonium phosphate unit at Paradip will fetch a whopping Rs 2,180 crore to Oswal Chemicals in what happens to be the largest deal in the fertiliser sector in the past few years.

The market had probably got an inking of the development in advance as the stock spurted in the past few days in the run up to the announcement. From a recent low of Rs 22.40 on 6 September 2005, the stock spurted a staggering 41.5% in just 7 trading sessions to Rs 31.70 by 16 September 2005.

Interestingly, in the trading session on 16 September 2005 – the day when the stock rose by the maximum permissible level of 5% to Rs 31.70, the deliveries in the stock were 100%.

In fact, the rally in the stock began since early August 2005 and the rally materialised on the back of high volumes. From Rs 10.50 on 8 August, the stock rose more than three fold to Rs 33.30 by 16 September 2005.

As per reports, the consideration of Rs 2,180 crore includes exposure of Rs 1,915 crore of banks and financial institutions.

Oswal’s di-ammonium phosphate unit at Paradip sold to IFFCO include a two million tonne capacity to produce DAP and complex fertilisers annualy. It also has a phosphoric acid plant along with railway siding facility. On a 100% capacity utilisation, production cost of phosphoric acid has been projected to be in the range of $ 415-420 per tonne, which is much lower than the price of $ 445 a tonne prevailing in the international market.