MCF shares up as minority shareholders reject transactions with Zuari Agro

Shares of Zuari Fertilisers-controlled Mangalore Chemicals and Fertilisers (MCF) jumped 17 per cent in intraday trade on Wednesday after minority shareholders rejected a transaction with Zuari Agro Chemicals at the company’s annual general meeting.

MCF had disclosed in a regulatory filing that its minority shareholders had rejected appointment of V S Venkataraman, a loyalist of Vijay Mallya, on the company's board and the transaction with group firm Zuari Agro Chemicals at the AGM. Venkataraman was an additional director at MCF since October 19, 2015. Saroj Poddar-owned Zuari Fertilisers, which owns 53 per cent stake in MCF did not vote.

“It is of no significance. It is business as usual for the company. Minority shareholders voted against but it will not impact the company,” said Poddar, chairman of Zuari Group. MCF was once controlled by Mallya, who had to sell his shares in the fertiliser-maker to Poddar after his venture into aviation with Kingfisher Airlines failed. He also lost his liquor empire he built as India's largest to global rivals - United Spirits to British liquor major Diageo and United Breweries to Dutch beer maker Heineken.