The custodian of Harshad Mehta shares has decided not
to put Mehta's ACC and Bombay Dyeing shares for the auction
scheduled for 22 August. Mehta's remaining shares in Reliance
Industries, ITC, Apollo Tyres, Punjab Tractors and Tata
Tea valued at around Rs 95 crores will, however, be put
for sale on the same day.
ACC and Bombay Dyeing shares termed as 'controlling block'
will not be put for sale now, due to some court-related
issues," sources close to the development say. "His
shares, which amount to nearly 12 per cent of the equity
capital of ACC, could create an unprecedented situation
when it is put for sale. It has the potential to cause
a few ripples in the cement sector and cause some anxiety
to the Gujarat Ambuja group, the single largest shareholder
in the cement major."
Gujarat Ambuja group owns a shade under 15 per cent
a threshold that triggers the Securities and Exchange
Board of India's (Sebi) takeover code for an open offer
of ACC's equity capital.
group could be caught in a dilemma if it acquires Mehta's
holding in ACC, as it will then breach the threshold of
15 per cent and will have to announce an open offer for
another 20-per cent stake. On the other hand they if they
don't pick up these shares a competitor like Lafarge,
which is a keen bidder for these shares, can buy the lot
and cause problems for Gujarat Ambuja.
before has a situation like this arisen where such a purchase
triggers off the takeover code. Sebi's regulations governing
takeovers and buyback of shares are silent on this issue.
to sources, there are 14.60-lakh shares of Reliance, 12.50-lakh
shares of Apollo Tyres, 1.18-lakh shares of ITC, 6.04-lakh
shares of Punjab Tractors and 2.33-lakh shares of Tata
Tea, which will be sold through auction on 22 August.
Currently, these shares have a market value of around
Rs 95 crore.
history of the sale of these shares of Mehta through auctions
by the custodian shows that the shares of most of the
companies were sold at a discount to the market price.