BILT to come under LM Thapar control post-recast

New Delhi, Nov 19: The Thapar group restructuring, which involves share transfer between various group companies, will result in the entire Rs 2,200 crore paper business including listed company Ballarpur Industries Ltd (BILT) being brought under direct control of LM Thapar.

“This restructuring will clarify that ownership of BILT shares rests with one person. This will help BILT shares, which I think are still undervalued, to realise their true value,” Gautam Thapar, BILT vice-chairman and managing director Gautam Thapar said.

The entire paper business comprising BILT, APR and the erstwhile Sinar MAS will come under the LMT fold once restructuring was over, he added.

At present, 31 per cent of BILt rests with LMT, 30 per cent with financial institutions (FIs), 14 per cent with a Saudi Arabian investor and the remaining with the Indian public, Mr Gautam Thapar said.

Comm-enting on the perception that BILT shares were undervalued despite promising financials and recent capacity acquisitions, he said besides “unclear” ownership, lack of liquidity in the stock also affected its price.

“Sheer lack of liquidity in the stock itself has also affected its valuation. Nearly 80 per cent of it is held between three entities,” he said.

Also, the paper industry in India offered little comparison for valuation.

— PTI