Siva Group buys13.9% in Arihant Housing

CHENNAI: The diversified $3-billion Siva Group, headed by NRI C Sivasankaran, has acquired a 13.88% stake in Chennai-based Arihant Foundations and Housing.

Arihant informed BSE on Monday the stake has been picked up by Siva Projects Engineering and Enterprises, Saravna Enterprises and S Jayalakshmi. Siva Group held 0.32% before the purchase.

The company, which is a leading player in the realty market, reported net sales of Rs 158.9 crore and a net profit of Rs 2.8 crore for the 12- month period ending September 2009. It has reserves and surplus of Rs 138.2 crore.

“Siva Group of companies have bought the stake as part of their treasury operations. The promoters have a comfortable 65% stake in Arihant and there is no move to dilute that,” a top Arihant official said. Senior officials in the Siva group confirmed the transaction. On Monday, the Arihant scrip quoted a high of Rs 130.5 before closing at Rs 126.5 against the previous close of Rs 128. The total traded value of shares was Rs 1.7 lakh.

The Siva group has been buying stakes from the market in select companies over the past few months. Few months ago, they bought 12% in Ruchi Soya Industries.