Business Daily from THE HINDU group of publications
Tuesday, Feb 27, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Feb 27, 2007 ePaper |
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Markets
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Stocks Corporate - Mergers & Acquisitions Our Bureau
The promoters of SSI - the Kalpathi family - sold their stake in two tranches - 13.5 per cent through an off-market deal on Friday last and 37.5 per cent through a share purchase agreement on Sunday, at Rs 208 a share. The deal works out to Rs 614.03 crore. The promoters - Mr Kalpathi S. Suresh, Mr Kalpathi S. Aghoram and Mr Kalpathi S. Ganesh - still hold a 20 per cent stake in the company. SSI's shares of Rs 10 face value closed today at Rs 166.10 on the NSE, against Friday's close of Rs 158.15. SSI is developing a township in Perambur, in north Chennai, and owns a hotel in Udhagamandalam, besides owning land on the East Coast Road, on the way to Mahabalipuram. The company is also into multiplexes and last year bought Telephoto Entertainment Ltd, which is into film production. When contacted, Mr Kalpathi S. Suresh, Chairman and CEO, SSI, said the promoters decided to sell their stake as it would help build a larger land bank and provide value to minority shareholders, who could exit through a mandatory open offer that the acquirer would have to make. The promoters had retained a small stake to take advantage of the growth opportunities that were now available to the company through a larger land bank. Real estate industry sources said that consolidation was happening in the sector across the country, with smaller players with regional operations and a few with a pan-India presence. They said that PVP Enterprises was building up a large land bank in Andhra Pradesh. In March last year, SSI had made a preferential allotment of shares to Morgan Stanley (5.94 per cent), Reliance Capital (8.04 per cent) and India Fund (5.23 per cent) at Rs 105 a share.
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