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RDB Industries, a Kolkata-based tobacco product company, has been moving up the market price ladder recently. The stock, which was 5 per cent up on Wednesday at Rs 117 on the BSE with a traded quantity of 76,616 shares (fortnight average 43,172 shares), has gained over 67 per cent in the past one month. The stock's 52-week low is Rs 17.20 (March 17, 2006) and 52-week high is Rs 191.35 (May 22, 2006).

Dalal Street grapevine suggests that the company promoters, as a precursor to a strategic move, have raised their stake to over 55 per cent after a preferential allotment in July as also market purchases in the past one year. Promoters' holding, including persons acting in concert, had gone up to 38.78 per cent as on June 30, 2006, from 26.58 per cent as on June 30, 2005.

Two of the promoter family members, Mr Vinod Dugar and Mrs Sheetal Dugar, had also made open offer for 20 per cent stake, which had opened on June 28 and closed on July 27. But, according to market sources, the response to the offer, priced at Rs 70 a share of Rs 10, was insufficient as the market price during that period hovered over the offer price.

Incidentally, Mr Vinod Dugar and Mrs Sheetal Dugar obtained 30 lakh shares on preferential allotment last month at Rs 70 each. This is out of the total of 36 lakh shares issued on preferential basis.

The paid-up capital of the company stood enlarged at Rs 10 crore as on August 11 against Rs 6.35 crore as on June 30, 2006, and the reserves at Rs 33.42 crore, up from Rs 11.52 crore.

Repeated attempts at reaching the promoters for response did not yield results.

Jayanta Mallick

More Stories on : Stock Markets | Stocks | Ear to the ground | Tobacco

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