The Hindu Business Line : Renewed interest seen in GKW on revival hopes

Corporate sources close to the company management confirmed to Business Line that SBI, the operating agency, has supported the package, which envisages selling of land in and around Mumbai, Kolkata and Bangalore.

According to sources, the plan placed before the BIFR suggested discontinuation of some of GKW's businesses such as steel, electrical and fasteners. The company proposed to carry on with only the auto component business. The proposed revival package suggests paying off the debts as well as workers' dues including running a VRS through the real estate sell-off programme.

Market sources said the company has placed a list of intending buyers to the BIFR. A section of market players is expecting the package would be cleared by the BIFR shortly. The management has submitted a draft rehabilitation scheme, while SBI has placed its report.

Further, the company has prepared the annual accounts for the period ended on March 31, 2004 as a going concern. The accumulated loss till that date was Rs 103.84 crore. The net loss of GKW for 2003-04 was Rs 25.48 crore. The loss reported in the first half of 2004-05 was 12.67 crore. The stock today closed at Rs 11.05 after touching a recent high of Rs 12.45 on the NSE and attracted a traded quantity of 6.62 lakh shares.

A clutch of investment vehicles reportedly controlled by Mr K.K. Bangur controls 42.83 per cent stake in the company. IDBI, IFCI, LIC, NIC, United India Insurance and UTI jointly hold 13.49 per cent. Tata Steel controls 3.47 per cent stake in the company and the public holding in the GKW is 32.31 per cent.