Bilt may hike stake in GCI

New Delhi, Dec 6: Ballarpur Industries Ltd (Bilt) is keen to increase its 31 per cent stake in Crompton Greaves India Ltd (GCI) further, after the company finished massive restructuring and has emerged from the red.

"We would like to increase our 31 per cent stake in Crompton Greaves further but may be not right now. I see good potential in the restructured Crompton Greaves," Bilt vice-chairman and managing director Gautam Thapar said.

While Mr Thapar did not disclose by how much this stake hike was likely, industry sources did not rule out Bilt hiking its stake in the beleaguered company to a majority 51 per cent over a period of time.

According to information available on the Bombay Stock Exchange website, the total promoter holding in CGI as on September 30 this year was 43.79 per cent, of which Indian promoters held 28.36 per cent while the foreign promoters has 13.75 per cent of the company’s equity whereas 1.68 per cent was held by persons acting in concert (PAC).

Though unavailable for comments at present, CGI chairman KK Nohria had earlier said "knowing Thapars psychologically, I think they will increase their stake in the company, may be up to 51 per cent, despite its poor financial performance. They see long-term gains, specially in the power sector".

He had said Thapars effectively hold 43 per cent stake, since they hold pre-emptive rights over the 13 per cent stake of CGI’s UK-based partner Invensys.

"The remaining eight per cent could be bought from either public or foreign institutional investors (FIIs) or even from banks for wresting majority control,’’ Mr Nohria had said.

Meanwhile, Mr Gautam Thapar said the restructuring of CGI, which involved divestment of several non-core areas, was over and "businesses of CGI are now by and large okay. "We have to now evaluate which businesses to consolidate in CGI. Its shareholders need to be patient,’’ he said.

— PTI