Why realty tycoon Jitu Virwani is buying MRO-TEK shares everyday

Shares of erstwhile telecom and solar products company MRO-TEK have been in focus recently following a hostile takeover attempt by Bengaluru-based real estate tycoon Jitu Virwani of the Embassy Group.Virwani confirmed to CNBC-TV18 he has bought 14 percent stake in the company and is "buying everyday" to further increase his stake.At heart of the matter is a contentious three-acre land parcel owned by MRO-TEK, which it has given to the Umiya Group for development. Virwani claims MRO-TEK has given away the parcel below its intrinsic value: about Rs 50 crore, compared with its Rs 100 crore potential. (MRO-TEK's market capitalization is below Rs 100 crore.)Virwani has developed a clutch of business parks in the city and a few years ago, acquired Four Seasons Hotel project, according to a report in the Times of India. He is interested in MRO-TEK's land as he is developing a marquee property next to it."It has given away the land cheaply. It is against the interest of minority shareholders," he said.The company was in the business of telecom products and solar panels but it appears it has got full time into real estate. Accordingly, it recently changed its name to MRO-TEK Realty. The company is already subject to an open offer from the Umiya Group.The corporate battle has helped the stock price, which has risen over 300 percent over the past one year.The counter has recently witnessed high volumes, with 6 lakh shares changing hands today, compared to a three-month average of 7,000.