First Leasing Company shares closed on the BSE at Rs 103.50, up by 5.45 per cent, on market rumours that promoters might sell stake in the company.

Market grapevine has it that Tatas, Swiss Re and Temasek Holdings are in the race to buy out promoters stake, which could eventually trigger an open offer.

However, First Leasing Company officials were not available for comments. A company official said the Managing Director is away.

Promoters hold 27.28 per cent stake in the company, while small retail investors have 6.29 per cent stake and high networth individuals have exposure to the tune of 24.82 per cent. Bodies corporate holds 35.34 per cent stake in the company.

The company reported a fall in net profit to Rs 96 lakh for the fourth quarter ending March 31, compared with Rs 8 crore for the same period the previous year. However, the company posted a profit of Rs 52 crore for the preceding quarter ending December 31, 2010. The reason for lower profits during the fourth quarter can be attributed to increase in tax, expenditure and interest payments.

Revenues also showed a decline to Rs 49 crore for the fourth quarter as against Rs 56 crore for the corresponding period last year.

For the financial year 2010-11, the company's profit doubled of Rs 71 crore on revenue of Rs 176 crore. First Leasing net profit was at Rs 35 crore on a revenue of Rs188 crore the previous year.

First Leasing's operations are primarily focused on corporate financing. The major clients being CitiBank, Johnson & Johnson, Volvo, Siemens Public Communications, ABB, ANZ Grindlays, IDBI Bank, TELCO, Knoll Pharmaceuticals, Bayer among many other names, said the company's Web site.

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