The Hindu Business Line : Punjab Tractors: Burmans' nominee appointed non-executive Chairman

The Burman family seems firmly on track to take over the reins of Punjab Tractors Ltd (PTL). The family's representative on the PTL board, Mr P.D. Narang, on Thursday was appointed non-executive Chairman of the tractor company at a board meeting. He replaces Mr S.K. Tuteja .

Growth roadmap

The company's board further gave its in-principle approval to appoint a management consultant to chalk out a growth roadmap for the company including a SWOT analysis of future strategies, which may also entail issues related to succession, market sources said. The appointment of Mr Narang seems to be the first step in this direction.

Mr Yash Mahajan will continue as the Vice-Chairman and Managing Director of the company.

The Burman family holds 12.5 per cent stake in PTL. The family can increase its stake up to 15 per cent without making an open offer. Currently, the family is the third largest shareholder after private equity firm Actis, which has a stake of 29 per cent and LIC, which has a 15 per cent shareholding.

Market analysts point out that the board's decision on Thursday could be a precursor to the family increasing its stake further in the company either by picking up additional shares through the open market or purchasing part of Actis' equity .

There has been considerable discord over the past few months between the current management and the largest shareholders.

Meanwhile, the Punjab Tractors scrip closed at Rs 282.05 today down 1.45 per cent over the previous day's close of Rs 286.20. The scrip has appreciated by 8.8 per cent over the past month, reaching its 52-week high of Rs 292.50 on May 3.

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