EID Parry (India), part of the Murugappa group and one of the leading sugar producers in south India, has increased its stake in GMR Industries to close to 65%. The company, which acquired the majority stake in April this year, has received only partial response to its open offer of 20% despite the offer price of a share being double as compared to that of acquisition of a share from GMR.
EID Parry, which acquired 1,01,80,471 equity shares (51%) of GMR at a price of up to Rs 57.35 per equity share of Rs 10 each, could muster only 12.18% of the 20% open offer, which ended on August 3 despite the offer being priced at Rs 110.69 a share. Following which, EID Parry?s stake in the company touched 63.18%.
As part of its share purchase agreement (SPA), EID Parry sought to hold not less than 65% of the paid up equity share capital of GMR. To fulfill this obligation, GMR Industries has decided to sell 1.82% more to make EID Parry?s holding at 65%, said market sources here. Following the dilution of 1.82% stake more, GMR Holdings stake in GMR Industries has come down to around 22%
For the 65% stake, EID Parry will end up paying around Rs 87.38 crore (including that of open offer). In addition to that, EID Parry also agreed to acquire 1.28 crore entire non-cumulative redeemable preferential shares of Rs 11 each which works out to an additional amount Rs 14.11 crore for the company.It may be recalled that EID Parry had entered into a definitive agreement with GMR Holdings on April 25 to acquire majority stake (not less than 65% inclusive of open offer) in GMR Industries.
