BSL Promoters Up Stake To 41% To Pre-empt Hostile Offer

New Delhi, Sept 28: | Updated: Sep 29 2003, 05:30am hrs
After surviving a takeover bid in December last year, the promoters of BSL Ltd have upped their stake through the creeping acquisition route. They have picked up 3.38 per cent equity of the company from the secondary market, raising their shareholding to 40.53 per cent from 37.15 per cent before the hostile open offer. The significant increase in the promoters share took place in the first quarter ended June 2003.

The total shareholding of promoters and persons acting in concert with BSL now stands at 44.44 per cent.

Confirming that promoters have consolidated their position in the company since the takeover bid, a company source said, a few shareholders acting in concert made an open offer to acquire 30 per cent equity shares of the company during 2002-03, which failed as the general shareholders did not respond to the offer.

On August 14, 2002, Ghanshyam Sarda promoted-Kolmak Chemicals along with Super Jupiter Courier, Sun Biotechnology, Suparshwa Distributors, Namokar Vinimay, Remarkable Fiscal Company and Pilot Consultants Ltd had attempted to acquire BSL through an open offer. The offer opened on November 7, 2002 was closed on December 6, 2002 without any success.

While the shareholding of private corporate bodies (PCB) and public has declined post takeover bid, institutional investors shareholdings in the company remained unchanged. Institutional investors hold 9.51 per cent equity stake in the company. Public holding has declined to 27.55 per cent from 28.25 per cent before the open offer. PCB, which had a combined stake of 17.10 per cent before the takeover bid, now controls 14.48 per cent equity holding. PCB includes associate companies of Kolmak, Sun Biotechnology and Super Jupiter Courier.

The shareholding of Kolmak along with its associate was a little less than 12 per cent before the open offer. As the offer was conditional on a minimum level of acceptance of 30 per cent of the fully paid-up equity share capital of BSL, Kolmak did not accept any shares tendered in the offer. Kolmak and its associates could manage about 19 per cent equity shares of BSL through the open offer.

BSL is part of Rs 1,700 crore LNJ Bhilwara group. It owns textile brands such as Mayur Suitings, BSL Suitings and La Italia. The company registered a turnover of Rs 148.98 crore in 2002-03 which included exports worth Rs 50.65 crore.

The net profit of the company for year ended March 31, 2002 was Rs 0.88 crore.