HB starts buying DCM Shriram shares
Investment firm HB Stockholdings has started buying DCM Shriram Industries (DSIL) shares from the market.
By Sanjeev Choudhary, TNN |
NEW DELHI: Investment firm HB Stockholdings has started buying DCM Shriram Industries (DSIL) shares from the market. HB Stockholdings has announced an open offer to acquire 22.8% of DSIL. The publicly-listed investment firm had on Monday offered to acquire shares of the sugar and rayon firm, owned by the Shriram family, at Rs 70 per share.
The exact quantum of shares bought by HB in the last two days could not be ascertained. At the time of announcement of the open offer, HB Stockholdings already held 12.87% stake in DSIL, the largest stake after promoters.
The mopping up of shares is to ensure that even if HB fails in its bid to takeover DSIL after the open offer, it would use its enhanced shareholding to force promoters to recast the board and professionalise the management, said a source close to Harish Bhasin, chairman of HB Stockholdings.
HB is also hoping that institutional investors may offload their stake to the firm. "Mounting a successful hostile takeover bid in India is very difficult, as institutional investors try to help the management. But we believe at attractive prices, institutions may be prompted to sell shares to us," said the source.
DSIL shares closed at Rs 76.15 on Tuesday on BSE, up 5% on the previous closing, with over 42,000 shares traded in the day.
The exact quantum of shares bought by HB in the last two days could not be ascertained. At the time of announcement of the open offer, HB Stockholdings already held 12.87% stake in DSIL, the largest stake after promoters.
The mopping up of shares is to ensure that even if HB fails in its bid to takeover DSIL after the open offer, it would use its enhanced shareholding to force promoters to recast the board and professionalise the management, said a source close to Harish Bhasin, chairman of HB Stockholdings.
HB is also hoping that institutional investors may offload their stake to the firm. "Mounting a successful hostile takeover bid in India is very difficult, as institutional investors try to help the management. But we believe at attractive prices, institutions may be prompted to sell shares to us," said the source.
DSIL shares closed at Rs 76.15 on Tuesday on BSE, up 5% on the previous closing, with over 42,000 shares traded in the day.
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