The promoters of Orient Abrasives Ltd, which manufactures and sells calcined and fused alumina products, refractories and monolithics, has sold its 18 per cent stake in the company to Bombay Minerals for Rs 54.9 crore ($8.6 million), as per a stock market disclosure.

"The promoters of Orient Abrasives have intimated to the company that on November 13, 2013, they have sold 21,535,056 equity shares (aggregating 18.00 per cent) held by them in the company at a price of Rs 25.50 per equity share to Bombay Minerals", the company said in the filing.

Promoters Shri Gopal Rajgarhia held 6,000 shares (0.01 per cent) and 10,764,528 shares (8.99 per cent) were equally held by Anisha Mittal and Bhavna Rajgarhia. Shares of Orient Abrasives were trading up 1.27 per cent to Rs 24 on Thursday at 2 pm.

Founded in 1953, Mumbai-based Bombay Minerals is engaged in exporting of processed minerals and refractories. The company serves clients with the association of two companies—Gandhi Sales Corporation and Gandhi Industrial Trading Company.

Established in 1971, Orient Abrasive is a part of the Rajgarhia Group. The firm manufactures various types of high-alumina abrasive grains (including calcined bauxite), refractories, monolithic and power.

Headquartered in New Delhi, Orient Abrasives’ manufacturing facilities are located in Porbandar, Gujarat and Bhiwadi, Rajasthan. Orient Abrasives had recently demerged its refractory division into Orient Refractories with the intention of selling a stake. Last May Germany-based RHI Group was planning to acquire Orient Refractories for Rs 600 crore.