The Pune-based high networth investor Ashok Kumar Parmar Business Standard that he would keep on increasing his stake in Videocon Appliances upto 15 per cent, if he is denied a berth on the board.
"I will continue to buy the Videocon Appliances stock till my shareholding reaches 15 per cent, the threshold limit for coming out with a mandatory open offer. Then I will take stock of the situation," he said. Parmar has acquired a 10 per cent stake in Videocon Appliances for Rs 7 crore (Rs 70 million).
When contacted, Venugopal Dhoot, chairman of Videocon group said he was unfazed with the acquisition of his company's shares.
Dhoot said, "It will not make any difference to us as the promoters along with persons acting in concert have a majority equity stake in the company. We welcome investors and there is no question of us offering Parmar a seat on the board of Videocon Appliances."
Dhoot said the promoters' holding in the company stands at 34 per cent. Taking the shareholding of the persons acting in concert, it goes up to 51 per cent.
Parmar has been acquiring shares of the Aurangabad-based white goods company and now wants a berth on the board of the company.
This is not the first time he is trying to do this. Earlier, he had unsuccessfully tried to get a board seat in listed companies including Indian Hume Pipes, Sai Service and Elecon Engineering. Parmar currently holds more than 9 per cent in the pipe manufacturing company but had exited Sai Service and Elecon, after making a handsome profit.
In fact after the initial disappointment in trying to get a foothold in the management of companies with strong promoter holdings like Sai Service, Elecon and Indian Hume, his latest modus operandi is to target companies with low promoter holdings. And that's where Videocon Appliances fits in.
Parmar, a self-confessed entrepreneur, said, "I want to be associated with the company in such a way that I can offer my business acumen collected over the years for its betterment."
His methodology of buying shares from the open market and then making a bid to get himself a seat on the board has so far come to a nought but he added, "I will keep trying till I succeed."
Market sources said that HNIs tend to buy big stakes in small companies with the sole objective of selling it off at a higher price, and raking in big profits.They identify such companies, start buying in huge quantities from the open market and by the time other investors jump in after noticing the rising volumes and prices, these HNIs start selling.