HBC, which already holds 23 per cent stake in Suvarna Cements, had acquired an additional 46 per cent in the cement company recently. But the shares were not transferred in view of a BIFR direction that there should not be any change in management of the ailing cement company without the boards' prior approval.

HBC had acquired the stake through mutual agreement with earlier promoters and an open public offer. HBC bought the shares at Rs 12 per share.

A BIFR bench, while giving its approval to the share transfer agreement reached between the old promoter of Suvarna Cements and HBC, said formal change of management could be made subsequent to its approval.

With the board's approval for the transfer of shares, HBC's holding in Suvarna would rise to 69 per cent from the present 23 per cent.

The Hyderabad-based cement company, which was declared sick by BIFR in 1989, reported a net loss of Rs 2.25 crore, excluding depreciation and interests during 1999-2000.

The BIFR bench also directed the company to convert Rs 2 crore out of the total unsecured loans of Rs 9.51 crore into equity to bring the debt-equity ratio to 1:1.

The bench directed that the remaining portion of the unsecured loan would be interest free during 2000-01 or till the accumulated losses were wiped out, whichever was later.

The promoters of the company had brought in Rs 9.51 crore as unsecured loans and Rs 5.79 crore as equity as part of an earlier sanctioned rehabilitation scheme. The company claimed that it would be able to come out with a financial restructuring package within three months of the approval of BIFR.