Shares of Selan Exploration Technology Ltd. surged over 12% to hit a record high on Tuesday after it recommended the merger with Antelopus Energy Ltd.
The board of the company will consider the option of the merger under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, according to an exchange filing.
The process of merger, including the scheme of arrangement, shall be subject to statutory and regulatory approvals, the statement said.
The resultant merger will aid in diversifying the company's portfolio across multiple sedimentary basins, both onshore and offshore, thereby providing access to an increased proven oil and gas resource base and the ability to enhance production, it said.
It will also enhance value for the company's shareholders, resulting in creation of a leading energy company in India, according to the statement.
Shares of Selan Exploration Technology rose as much as 12.49%, before paring gains to trade 9.38% higher at 10:45 a.m. This compares to a 0.05% advance in the NSE Nifty 50.
The stock has risen 77.24% year-to-date. Total traded volume so far in the day stood at 51 times its 30-day average. The relative strength index was at 75, implying that the stock may be overbought.
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