Nov 24, 2005, 09.34 AM IST

Urvi Piramal picks up 80% stake in Dawn Mills

CNBC TV-18 has learnt that the Urvi Piramal Group has picked up an 80% stake in Dawn Mills. Analysts say that it is more of a controlling stake.

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CNBC TV-18 has learnt that the Urvi Piramal Group has picked up an 80% stake in Dawn Mills . Analysts said that it is more of a controlling stake.

"The promoters hold about 52% in Dawn Mills. We understand from our sources that there is a good likelihood that the Urvi Piramal Group might go out and buy out the entire promoter holdings in Dawn Mills Limited," said an analyst.

The analyst further added, "Dawn Mills is into readymade garment fabrics, knitted fabrics, hosiery, yarns and a host of other textile areas."

According to analysts, Dawn Mills (which has a marketcap of about Rs 76.3 crore) is sitting on land of about 28000 square meters. However, that is a only a rough figure.

Analysts mentioned that it is difficult to put a valuation stamp on how much this land is actually worth.

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But when this stake acquisition actually goes through, which is expected to happen either today or before the end of the week; it would be a good entry for the Urvi Piramal Group into Dawn Mills, because the 50% stake could be valued at around Rs 30-35 crore.

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