Hindustan Powerplus spurted on sustained buying on Friday, following reports that Caterpillar Commercial SA of Belgium, along with its holding company, has made an offer to buy the remaining 62.25% stake in the company.

By 10:30 IST, the scrip leaped by 8% to Rs 31.10 on the BSE. A relatively higher volume of over 350,000 shares was recorded on the counter.

On Thursday, the scrip of the engine manufacturer ended at 20% upper limit of the circuit breaker at Rs 28.80. On the same day, Caterpillar Commercial SA, a company incorporated in Belgium, along with its holding company Caterpillar Inc (person acting in concert), incorporated in Delaware, announced an open offer to the shareholders of the company for acquiring the remaining equity shares of Hindustan Powerplus. The offer price of Rs 32 is at a premium of 2.9% to the currently traded price of the company's scrip.

Caterpillar Commercial SA will acquire up to 19,779,914 equity shares of Rs 10 each, representing 62.25% of the paid-up capital of the company. The acquirer already holds 11,995,200 (37.75%) shares in Hindustan Powerplus. The offer opens on 12 March and closes on 10 April 2003.

Hindustan Powerplus, incorporated in October 1988, was promoted by the C K Birla Group of companies - Hindustan Motors, Hyderabad Industries, Central India Industries, Rajasthan Industries, Universal Trading & National Bearing Company in technical and financial collaboration with Caterpillar of USA. The company began with the manufacture and marketing of heavy-duty internal combustion diesel engines and gensets.

HPL's manufacturing facility at Mathagondapalli near Hosur, Tamil Nadu commenced operations in January 1989. This plant has an installed capacity to manufacture 2,800 units of ICD engines and 250 units of gensets. The company's products, diesel engines and gensets, are marketed under the brand name 'Caterpillar'.

For the third quarter ended 31 December 2002, HPL registered a 68.3% rise in net profit to Rs 1.70 crore on a 18.7% increase in net sales to Rs 42.95 crore.