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Our Bureau

Kolkata, Jan. 12 Temptation Foods on Monday saw its 52-week low of Rs 116 and finally closed at Rs 124.65, with a loss of over 12 per cent after the company reported to the BSE that the promoter entity – Venture Business Advisors Pvt Ltd – was pledging seven lakh shares of Temptation Foods with one of its creditors. It currently holds of 94.92 lakh shares representing 37.8 per cent of Temptation Foods’ paid-up capital.

The communication, however, did not mention the creditor and the quantum of credit against which those shares were being pledged.

“The pledging of shares is required to be disclosed and the fact that the current sentiment is to look at any promoter activity with suspicion may have been behind the decline of Temptation,” said Mr Ajay Jaiswal of Microsec.

Interestingly, Venture Business Advisors, along with Temptation Foods, has been acquiring shares of Kohinoor Foods from the market.

According to Temptation, 11.98 per cent stake in Kohinoor Foods is held by the company and Venture Business. This, however, does not figure fully in the shareholding pattern announced by Kohinoor to the BSE. According to shareholding statement as of September 30, declared by Kohinoor, promoters held 32.58 per cent while Temptation was shown as holding 5.02 per cent.

According to an analyst, Temptation promoters have been growing their business mostly through inorganic route.

At an EGM in October, shareholders had approved the Temptation board to raise up to $200 million for growth. The company is yet to announce if they were pursuing the fund raising plan.

Temptation stock has lost 26 per cent in the one-month period, while Kohinoor gained by 9.32 per cent during that period. On Monday Kohinoor closed in the green with an improvement of over one per cent at Rs 90.90.

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