The Hindu Business Line : Promoters offload over 8 pc in Mirza Tanners

Mr S.K. Bajpai, Company Secretary, confirmed to Business Line from Kanpur on Tuesday that the promoters including "foreign promoters" — NRI relatives of the Mirzas — have indeed sold some 10 lakh shares in October and November so far.

As on September 30, the Indian promoters held 70.95 per cent of the paid-up capital, while the foreign promoters held 3.54 per cent.

According to Mr Bajpai, the Mirza family members and relatives have offloaded their holdings partially for "personal reasons".

According to brokers and dealers, the Mirza Tanners counter has been witnessing hyper activity since October and a set of operators are said to be cornering the stock.

From the closing of Rs 107.60 on September 9, it has moved up to close at Rs 181 on Tuesday.

Mr Mathew Easow of matheweasow.com felt the recent price rise did not match up to the company's current fundamentals.

Mr Milan Bavishi of Anagram Stockbroking said the company has initiated a business restructuring plan. The recent off shoring order from Cleons of France, worth $10 million, to be executed over a period of 18 months, was a big positive for the stock, Mr Bavishi observed.

The company was in the process of forming an associate company in France in alliance with a French leather goods manufacturer to gain greater market access into Europe.

Mr Bajpai said Leather Trends Pvt Ltd, a profit making group company specialising in ladies footwear, was being merged with Mirza Tanners. "The merger would be complete within six months from now. It is expected to improve the bottomline of Mirza Tanners and add a new basket of products."

The company is also planning to add capacity in the near future and enter the upholstery segment, according to him.

According to market analysts, the proposed merger would increase the capital base of the company and also increase the promoters' shareholding.

"Thus, the current offloading will not have much of an effect on the shareholding pattern post merger," an industry observer said.

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