JM Financial and its group firms have increased their stake in IVRCL past the five per cent mark with the acquisition of additional shares.
In a statement to the BSE, JM Financial Products Ltd and persons acting in concert, have informed that they have increased their stake in the Hyderabad-based infrastructure company IVRCL to 5.04 per cent. They together had about 4.59 per cent equity stake in IVRCL earlier.
IVRCL is in news lately for the ongoing stake tussle between the current promoters and the Mr Subhash Chandra-promoted Essel Group, with the latter picking up about 12.27 per cent stake in the company and hinting at increasing it further. However, last week, Essel Group said they would hold on to the current stake and watch the situation.
The company had created encumbrance on shares held as collateral to secure loans sanctioned. The JM statement mentioned that about 7,160 shares held as margin were released, and 2.08 lakh shares were acquired from open market as part of cash future arbitrage transaction.
Working in tandem?
IVRCL and Essel are engaged in a spat over the appointment of UBS to negotiate a sale deal for IVRCL. While IVRCL has denied this move, Essel has stated that UBS had approached them with a proposal. The IVRCL management has said that they would sue UBS if they were party to such a mandate as contended by Essel.
According to analysts, the equity held by institutional holders could tilt the balance either way.
Many are wondering whether JM Financial is working in tandem with Essel. JM Financial is headed by ace dealmaker Mr Nimesh Kampani. According to filings, JM Financial was associated with Essel Group in their bid to acquire shares from the open market.
IVRCL shares ended the day at Rs 60.85 up 1.25 per cent.
vrishi@thehindu.co.in