FIs, including ICICI Ltd, held about 21.96 per cent in Kesoram and with the former selling its entire stake, the FI holding in the company was now slightly less than 20 per cent.

The move to acquire ICICI's holding was prompted by reports that a Dubai-based non-resident Indian (NRI) by the name of Shiv Kumar had cornered over 12 per cent of Kesoram's equity from the stock markets and was planning to make an open offer to acquire another 20 per cent and stake his claim in the management.

The company, on Thursday, had bought off the entire holding of 15 lakh shares or 2.86 per cent of the total equity from ICICI. The officials, while confirming the deal, declined to disclose the rate at which the deal was struck. The BK Birla flagship company had, however, denied receiving any intimation from the 'unknown' raider and at the same time had ruled out the threat of a takeover.

Company officials also said that, "If the acquirer mounted a hostile takeover bid," they did not rule out the possibility of a complete buy-out of the company's nearly 20 per cent stake that was with the FIs. The BK Birla flagship had, on Tuesday, brushed aside any possible takeover threats even as the market was abuzz with reports about the imminent acquisition of a substantial stake by a Dubai-based bank. "We are quite safe and there is no threat at all. It could be just because of our improved performance during the last two quarters that our company's scrips have witnessed renewed attraction," a top Kesoram official had said at the time. However, with the Dubai-based Shiv Kumar's reported statements to newspapers, the situation later took a dramatic turn.

The company was reported to be under takeover threat since the last three months when a Bihar-based firm intimated the Calcutta Stock Exchange (CSE) that it had acquired an eight per cent stake in Kesoram November last. However, the latter was proved to be the handiwork of some marketmen. When the media therefore wrote about the Dubai-based businessman's plans, the company's initial reaction was in line with its earlier experience in November, 2000. Officials claimed that some leading operators might have an interest in the company's scrips and were therefore planting information. The group's flagship company had reported a net profit of Rs 7.43 crore during the 9-month period of 2000-2001 against a net loss of Rs 4.1 crore last year and was planning to increase its cement production capacity.