Kumar Mangalam Birla to meet Ram Naik this week

Our Corporate Bureau

Mumbai, Oct 19: The Aditya Birla group chairman Kumar Mangalam Birla is scheduled to meet union minister for petroleum and natural gas Ram Naik this week to resolve the Mangalore Refineries and Petrochemicals Ltd (MRPL) issue.

While the AV Birla group is demanding around Rs 500 crore for the stake, Hindustan Petroleum Corporation Ltd (HPCL), the joint venture partner says that the stake at half the price is still expensive.

According to industry analysts, the AV Birla group may use this amount to fund the 10 per cent stake it acquired from the Ambanis in Larsen & Toubro. The AV Birla group has valued its shares at Rs 16 a share, while HPCL feels that the prevailing market price of Rs 6, the equity was costly in view of the joint vetures’s deteriorating finances.

Mr Birla had met Mr Naik two weeks ago. Earlier in the day, the HPCL top brass met Mr Naik on the same issue. HPCL and the AV Birla group have been asked by Mr Naik to sort the issue amongst themselves.