Subash Chandra-run Essel Group hikes stake in IVRCL to 12.27%
04 April 2012
The battle for control of IVRCL has intensified after the Subash Chandra-run Essel Group increased its stake in the Hyderabad-based infrastructure firm by 2.08 per cent to 12.27 per cent.
Essel Group now holds 1.09 per cent stake more than IVRCL founder Sudhir Reddy, who holds 11.2 per cent.
According to a statement issued to bourses by two Essel group companies, Asia Satellite Broadcast and Jay Properties, Essel group have acquired 55,60,000 shares representing 2.08 per cent of the total equity of IVRCL in secondary market.
IVRCL share price has risen by more than 17 per cent since 28 March after Essel group initially acquired a 10.19 per cent stake.
After buying the initial stake, Mumbai-based Essel group had threatened to increase its stake in the infrastructure firm. "In line with the philosophy to grow the infrastructure business to match and benefit from the rising proportion of infrastructure investment by India, the Essel Group has acquired a 10.19 per cent stake in IVRCL Ltd and is keen to increase it and is in the process of increasing it.''
According to market regulator SEBI's new guidelines, the takeover trigger limit has been increased from 15 per cent to 25 per cent, and it is logical that Essel group will increase its holding in order to get management control of IVRCL.