Business Daily from THE HINDU group of publications
Friday, Nov 30, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Nov 30, 2007 ePaper | Mobile/PDA Version |
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Markets
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Open Offers
Our Bureau Mumbai, Nov. 29 HB Stockholdings Ltd has raised the open offer price to buy the additional 22.88 per cent stake from shareholders of DCM Shriram Industries (DSIL) to Rs 120 a share from the earlier offered Rs 70. The company already owns 12.87 per cent stake in DCM Shriram Industries (DSIL) and had made an open offer to the shareholders of DSIL to acquire up to 35 lakh fully paid-up equity share capital at a price of Rs 70 per equity share on November 19; the DSIL stock closed at Rs 76.15 on the BSE on that day. DSIL is a company in the business of sugar and rayon and HB Stockholdings Ltd is a non-banking finance company dealing in securities. Promoter stakeCurrently, the promoters of DSIL own 32.54 per cent stake in the company. HB Stockholdings had challenged the move by the promoters to allot themselves seven lakh warrants, wherein each warrant would carry a right to subscribe to three equity shares and would have raised the promoter stake by an estimated 10 per cent after conversion, taking the promoter stake to 42.54 per cent. Later, as the open offer by HB Stockholdings was put across, the promoters of DSIL offered to pay a higher price of Rs 90 per share for the allotment of warrants to them and also pay upfront the whole amount. Earlier, the warrants were supposed to be issued at Rs 52 per share. DCM Shriram Industries Ltd is promoted by three brothers — Mr Tilak Dhar, Mr Alok Shriram and Mr Madhav Shriram — great grandsons of Mr Lala Shriram, the DCM group founder. The DSIL stock ended the day on Thursday at Rs 106.35, a rise of 4.96 per cent over the previous day’s close. HB Stockholdings closed at Rs 74 after touching intra-day high of Rs 76.3 against previous day close of Rs 72.7. More Stories on : Open Offers | Diversified
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