The Hindu Business Line : SEBI urged to probe AP Paper Mills transactions

CITIZEN Welfare Association, an organisation that represents investors in West Bengal, has written to SEBI seeking investigation into the sudden bursts of trading in the shares of Andhra Pradesh Paper Mills."Data gathered from BSE and NSE suggest that there are sudden bursts of transactions. On some days, these have contributed to as much as 80 per cent of the trading volume," said sources aware of the developments.

The investors' body has also underscored the fact that the promoter group has recently acquired the stake held by the Andhra Pradesh Government, the source added.

The company had informed the stock exchanges last week that an outfit close to the promoters, Shree Krishna Agency Ltd, has offloaded 39,000 shares. With this, Shree Krishna's stake has declined from 42,500 equity shares to 3,500 equity shares, which account for 0.03 per cent of the company's equity.

It may be recalled that Digvijay Investments, which was earlier a subsidiary of West Coast Paper Mills, had obtained 30 lakh shares held by the State Government at Rs 130.95 per share in December last year. While the acquisition price was more than 25 per cent higher than the previous 26 weeks' average trading price of Rs 92, there was no open offer as it was not higher than the previous two weeks' trading average, which was approximately Rs 107.

According to information provided by NSE, the company's shareholding pattern as on June 30 was as follows: 69.53 per cent with promoters, 9.46 per cent with banks and other institutions, 5.43 per cent with private corporate bodies and 15.5 per cent with the public.

The total foreign holding, including GDR, relates to 5,325 shares, representing 0.05 per cent of the capital. Entities that held more than one per cent of the equity included GIC and PSU insurers as well as stock broking firm CD Equisearch.

The promoters' holding was spread over Digvijay Investments (55.53 per cent), Maharaja Shree Umaid Mills (4.85 per cent) and Peria Karamalai Tea (5.29 per cent).

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