The Hindu Business Line : Patel Engg promoters offload 10% stake

PROMOTERS of Patel Engineering on Tuesday sold 10 per cent of the company's equity in the market. Fidelity Fund and Prudential ICICI Mutual Fund bought most of the shares sold by them.

Promoters two companies - Praham Engineering Company and Patel Realtors - sold 24.30 lakh shares each on the BSE. The company's paid-up capital is 4.86 crore shares of Re 1 each. They sold the shares at Rs 170 a share, which translates to Rs 82.62 crore.

Before this deal, promoters' holding in the company was 77 per cent.

Of the shares sold, Fidelity Fund Mauritius bought 25 lakh shares (5.14 per cent of the company's equity) and Prudential ICICI Mutual Fund bought 18.13 lakh shares (3.73 per cent of equity).

The stock closed at Rs 196.20, up 6.2 per cent, on the BSE. It touched a high of Rs 203.20 and a low of Rs 170.

Even though the closing price on the NSE was same, the day's low was Rs 183.35 and high was Rs 212.55. Three lakh shares were traded on the NSE while 58.91 lakh shares were traded on the BSE.

Brokers said the main factor for the selling by promoters is to increase liquidity in the counter, as promoters held most of the shares. "Since the liquidity in the stock was low, there was no institutional interest despite the good fundamentals of the company," said a dealer with a domestic broking firm.

At the end of the June quarter shareholding pattern, there was negligible institutional holding in the company.

Patel Engineering is engaged in construction of dams, bridges, roads and other engineering projects. It has bagged several big projects for construction of roads and irrigation projects.

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