The Hindu Business Line : Asahi India stock pulls block deal

While, the Indian promoters, Mr B.M. Labroo, and his family/associates and Maruti Udyog Ltd (11.11 per cent), controlled a total of 33.11 per cent stake, the Asahi Glass Co of Japan, as an overseas partner, had a holding of 22.21 per cent of the total paid-up capital as on March 31, 2004.

However, Mr Sanjay Labroo, MD and CEO of the company, and a few employees have been increasing their stake since then, through off-market deals among the promoter group members.

Among the big stakeholders were two private corporate bodies, Shankar Resources Pvt Ltd (2.79 per cent) and Sudarshan Securities (2.11 per cent). Notz Stucki ET CIE SA (account Aruna Fund) held 1.18 per cent and Bright Star International 1.49 per cent as on March 31, 2004. Currently, according to dealers, the stock is on a cum-dividend zone and the investors' interest was understandable in view of the 225 per cent dividend proposal.

The company is a sole supplier of glass items to the automobile industry, with a market share of 91 per cent in the OEM market. In terms of volume, it has a share of around 55 per cent in the replacement market of car glass products.

At today's closing price, the stock traded at 10.8 times its 2003-04 earnings per share.

According to Mr Ketan Thacker of Anagram Stockbroking, as the stock retraced from its 52-week high of Rs 155, without losing its momentum in sales figures, it looks attractive. The company, after the merger of Floatglass India with itself, has sped along quite well in the domestic market. It is also setting up glass processing facilities at Taloja, near Mumbai.