The Company Law Board (CLB) is likely to hear on September 7 the case filed by Kolkata-based software firm Descon Ltd against the move to dilute 57.17% stake in power distribution firm DPSC (erstwhile Dishergarh Power Supply Company). Descon Ltd is the single-largest shareholder in DPSC and is claiming the first right of refusal to the shares put up for sale by Andrew Yule & Co Ltd, along with group firms Life Insurance Corporation of India and United India Insurance Co Ltd.
?The CLB will take up the matter again on September 7, as no decision was takenduring the last hearing on August 17,? Andrew Yule chairman and managing director Kallol Datta told FE.
The disinvestment in DPSC is crucial for raising funds to revive Andrew Yule, a public sector unit in the heavy engineering sector. Andrew Yule is also in the process of offloading stake in other ventures, including Tidewater Oil and Phoenix Yule, for its revival. Descon, a subsidiary of Andrew Yule, filed the petition before CLB in November 2008, when the process of stake dilution was in the last stage. Since then, Andrew Yule and interested firms are waiting for the uncertainty to end. ?The case before the CLB is delaying the process of disinvestment and our revival,? said Datta.
Sixteen companies, including Tata Power, Reliance Infrastructure, JSW Energy, CESC and Coal India Ltd, showed initial interest in DPSC. However, Andrew Yule could not call for financial bids as the Calcutta High Court asked it not to transfer the shares to the successful bidder.
Andrew Yule holds 7.12% in DPSC, while its associates Bengal Coal Co Ltd and Katras Jherriah Co Ltd hold 4.7% and 3.38%, respectively.