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August 14, 2001
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Money > Business Headlines > Report August 14, 2001 |
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Arun Bajoria at it again, buys 5.14% Bombay Dyeing stakeBS Bureau After a lull of a few months, Arun Kumar Bajoria is back into the corporate battlefield, this time also against the Nusli Wadia-managed Bombay Dyeing & Manufacturing Co Ltd. The Calcutta-based jute baron has acquired 5.14 per cent stake in Bombay Dyeing and said he would scale up his holding to just below 15 per cent if the current market rate of Rs 40 a piece prevailed. This would be a repeat of his earlier acquisition of Bombay Dyeing stake to exactly the same level late last year. When contacted, Bajoria told Business Standard: "I have informed the company about my acquisition of 86,475 shares, which raised my stake to 5.14 per cent. I have in total acquired nearly 300,000 shares, including 86,475 shares I disclosed to the management, over the past couple of weeks. I will keep on acquiring shares as long as the market rate of Rs 40 a piece continues. Thereafter, I intend to participate in the proposed buyback, which has promised to buy shares up to Rs 60." Nusli Wadia could not be contacted on the issue. A person receiving the call at his residence said he was out of station. However, Bombay Dyeing, in a letter to stock exchanges, said there were discrepancies on his disclosure of shares. The company said that its records and Bajoria's information differed on the names of the firms through which Bajoria held the shares. When asked on the issue, Bajoria said: "I don't think that there is any scope for this type of discrepancy in the dematerialised regime. I have gathered data from NDSL and CDSL. " The company said that it was seeking clarification from Bajoria on the issue. Bajoria said he did not receive any such letter seeking clarification from the company. Bajoria, however, clarified that he would not cross the 15-per cent mark beyond which an open offer to acquire another 20 per cent stake was mandatory. He said he was not "in a mood to make so much investment" in the company. He described his acquisition in the company as part of a move to make the Bombay Dyeing management to buy back his shares under the proposed programme. "The promoters are holding nearly 41 per cent stake in the company and buying back more will clearly not allow a substantial floating stake to remain in the market. Therefore the management should buy back my shares under its proposed buy-back programme", said Bajoria. Bombay Dyeing has promised to buy up to 25 per cent stake in the company at a price not exceeding Rs 60 a share. Bajoria hit the headlines last year by acquiring 14 per cent stake in Bombay Dyeing. The company management moved to the Company Law Board against his reported non-disclosure of his holding as soon as his stake crossed the five-per cent mark and obtained an order freezing his voting rights. The company also moved to the Securities & Exchange Board of India. Faced with a Sebi investigation and depressed stock market condition, Bajoria diluted his stake in the company to 4.9 per cent. He has started repurchasing from this level this time. Bajoria said he had informed the company on time when his stake crossed the five per cent mark, thereby complying with Sebi norms on Substantial Acquisition of Shares. Powered by YOU MAY ALSO WANT TO READ:
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