Nirma bid to acquire GHCL
ENS ECONOMIC BUREAU
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MUMBAI, AUG 21: The markets are agog with rumours that Karsanbai Patel's Nirma is poised to launch a hostile take over bid for Gujarat Heavy Chemicals Ltd (GHCL), a Sanjay Dalmia company. After accumulating market purchases of GHCL for the last few months, Nirma Credit Capital, a 100 per cent subsidiary of Nirma Ltd, lodged about 11 lakh shares for transfer yesterday.
This constitutes just over one per cent of GHCL's share capital.Market sources believe that Nirma has bought another three per cent, but these have not yet been sent for transfer. GHCL's transfer books close on August 31 for the payment of dividend. The company's AGM is scheduled for September 12.
Under the takeover guidelines, Nirma will have to disclose its holdings once they touch five per cent. Nirma officials, when contacted, denied any takeover intentions.
Kaushik Patel, vice-chairman of Nirma Credit, confirmed to The Indian Express that his company had bought GHCL shares from the market, but added that "it is not with the intention of taking over the company". Nirma's investment portfolio is around Rs 50-70 crore, he said.
Two things appear to have triggered the takeover talk. One is the Gujarat Industrial Investment Corporation's move to sell off its 15.68 per cent stake in GHCL. Another is Karsanbhai Patel's plan to gain some control of the oligopolistic soda ash marketcurrently dominated by Tata Chemicals, DCW, Saurashtra Chemicals and GHCL.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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