Eastern Resin picks up 6.17% in GESCO Corp

Our Corporate Bureau

Mumbai, Aug 3: The Sikkim-based Eastern Resin & Allied Products Ltd on Friday acquired 17,75,185 shares of GESCO Corporation Ltd, representing 6.17 per cent of the total shares of GESCO. Eastern Resin has also acquired voting rights of the company, GESCO informed the Stock Exchange, Mumbai (BSE).

Sources claim that Eastern Resin is promoted by Mr Abhishek Dalmia and that effectively he was transferring shares from one holding company to another, though no official confirmation could be got.
With today’s acquisition, Eastern Resin has increased its stake in GESCO Corporation to 7.27 per cent. The company had in the past acquired 3,15,335 shares of GESCO which represented 1.10 per cent of GESCO. With this acquisition, the total share holding of Eastern Resin & Allied Products Ltd in GESCO Corporation has gone up to 20,90,520 shares representing 7.274 per cent of the total shares.

Mahindra Realty and Infrastructure Developers Ltd (MRIDL) executive director Arun Nanda said that the acquisition would not affect MRIDL as well as the partner company, GESCO, as the increase in stake is just around 7 per cent. “The matter has come to us for legal compliance,” said Mr Nanda. GESCO Corporation and MRIDL together hold a 70 per cent stake in the joint venture. The boards of GESCO and MRIDL on June 22 had approved a scheme for de-merger of MRIDL into GESCO with effect from April 1, 2001.

The scheme had a provision wherein shareholders of GESCO who want to encash their investment and not participate in future growth plans of the combined entity could opt for redeemable shares of GESCO.