The Hindu Business Line : Ruia group to revamp shareholding pattern

In makeover mode
According to the plan, DIL Rim and Wheels will continue to hold promoters stake in Falcon and Dunlop.
The group will bring the shareholding in sugar business under a separate holding company.
Raghav will emerge as the holding company for the engineering business.

Kolkata , Oct. 13

The Kolkata-based Ruia group is planning to untangle its shareholding pattern to make way for three separate holding companies directly controlling three different lines of business.

The group currently controls its exposure in tyre, sugar and engineering through three holding companies — Raghav Industries, Ruia Cotex and DIL Rim and Wheels. Raghav is listed on the BSE and is the main holding company for engineering and sugar business. DIL Rim and Wheels registered abroad controls the listed tyre outfits, Dunlop India and Falcon Tyres.

Ruia Cotex is practically defunct and controls a 25 per cent in Indo Wagon Engineering Pvt Ltd, a special purpose vehicle (SPV) created to acquire Jessop & Co. Raghav controls 75 per cent stake in Indo Wagon which in turn controls 94 per cent stake in Jessop.

Raghav Industries is held 44.42 per cent by the Ruia family and is also the holding company of Kamlapur Sugar.

Plan proposals

According to the plan under consideration, DIL Rim and Wheels will continue to hold promoters stake in Falcon and Dunlop.

The group will bring the shareholding in sugar business under a separate holding company, which will promote any new venture in the sugar sector in the future.

Raghav will emerge as the holding company for the engineering business controlling each outfit directly.

SPVs such as Indo Wagon may be merged with Jessop and Jessop's wholly-owned subsidiary Pallavi Engineering will be brought directly under the fold of Raghav.

Also, the SPVs created for the two latest acquisitions Hirakud Cables and IDCOL Rolling Mills in Orissa could be merged with Raghav.

Raghav Industries registered a turnover of Rs 9.7 crore in 2005-06, down from Rs 30 crore in the previous fiscal. The profit after tax was Rs 4 lakh in 2005-06.

Shares of the company closed at Rs 50.50 on the BSE on Friday as against the previous closing price of Rs 49.05.

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