The Hindu Business Line : Promoters consolidate holding in India Cements

Three investment companies belonging to Mr N. Srinivasan, Vice-Chairman and Managing Director, and Mr N. Ramachandran, Executive Director, The Indian Cements Ltd, have completed the acquisition of 4.19 per cent stake from the Sanmar group, for a total consideration of about Rs 127 crore.

Mr Srinivasan and his brother, Mr Ramachandran, are promoters of the company along with the Sanmar group.

India Cements had informed the stock exchanges on February 27 that the three investment companies - Anna Investments Pvt Ltd, EWS Finance & Investments Ltd and Prince Holdings (Madras) Pvt Ltd - would acquire the 4.19 per cent stake in two tranches of 40 lakh shares each, on March 3 and March 10.

Since this was an inter se transfer of shares among promoters, the price would be the price at which the shares closed on those two days.

On February 27, the company's shares closed at Rs 136.05 on the National Stock Exchange.

On March 3, the deal was transacted at a price of about Rs 149 and today at Rs 169.

Stake hike

With this acquisition, the shareholding of Mr Srinivasan and Mr Ramachandran will increase to 27.34 per cent and the Sanmar group will be left with a 3.61 per cent stake.

The Sanmar group, through its investment company Stargate Investments Ltd, sold a 11.91 per cent stake in India Cements to three investment companies in September 2005 for a consideration of about Rs 192 crore, or Rs 116 a share.

The Sanmar group decided to dilute its stake in India Cements to fund its other business, mainly the PVC project.

Share prices up

India Cements shares closed today at Rs 168.55 up from Rs 165.45 on Thursday.

More Stories on : Mergers & Acquisitions | Cement

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page