Financial Daily from THE HINDU group of publications
Saturday, Dec 27, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 27, 2003 |
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Corporate
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Mergers & Acquisitions Balrampur Chini promoters sell 10% stake Our Bureau
Kolkata , Dec. 26 PROMOTERS of Balrampur Chini Mills Ltd, the city-based Saraogis, have offloaded 10 per cent of their stake in the company in favour of institutional investors. According to a company spokesperson, the deal took place early this week. The promoters' stake in the company has come down from 47 per cent to 37 per cent. The Saraogis sold off 19 lakh shares for a consideration of Rs 50 crore. Market sources said that shares were picked up by DSP Merrill Lynch, Reliance Mutual Fund, HSBC and India Capital Fund. Each share was priced at Rs 260. It was learnt that Enam Securities brought the proposal on behalf of the institutions. This is the first time that the promoters have offloaded their stake. "With this deal the shareholding pattern of the company has expanded a lot. It is good to have such a wide range of shareholders. We feel that the deal was struck at a right moment," the company spokesperson told Business Line. When inquired whether 37 per cent stake is sizeable enough for the promoters to thwart off any takeover threat, the spokesperson said that it is comfortable. "We feel that a holding of around 40 per cent is good enough to tackle any takeover threat," he said. Meanwhile, the company has commissioned its first greenfield project - an integrated sugar complex - at Haidergarh in Uttar Pradesh on schedule. The total sugar producing capacity of the company has increased to 29,000 tonnes crushed per day from 25,000 tonnes crushed per day. The company is also expanding its alcohol capacity next month when it commissions a new 60 kilolitres per day distillery at its Bhabnan factory. There is a 100 kilolitres per day distillery along with the Balrampur factory too.
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