The Chennai-based Rs 14,000-crore Murugappa Group, with interests spanning from fertiliser to finance, has been unwinding its cross holdings in group companies, progressively. The move is part of the Group’s plan to bring a seamless succession plan among the different families which now controls the group.
The group had earlier roped in the services of a leading international consultant to unwind the cross holdings in its listed entities as part of the restructuring plan, a couple of years back. The companies in which the family has been paring stakes in favour of Group members include Tube Investments of India, EID Parry, Carborundum Universal, Cholamandalam Investments and Coromandel International. The shares has been sold at fair prices to avoid any future complications, sources said.
Group executive chairman A Vellayan’s family has been diluting their holdings in EID Parry. While A Vellayan had sold 15 lakh shares, Lalitha Vellayan sold 90,000 shares followed by V Arunachalam (30,000 shares) and V Narayanan (30,000 shares).
Similarly, in Tube Investments, MM Murugappan, the vice-chairman of the group, has sold 1 lah shares followed by MM Muthiah (1 lakh shares and MM Veerappan (one lakh shares).
In Coromandel International, Lalitha Vellayan has sold 25,000 shares, V Arunachalam (12,500 shares) and V Narayanan (2,500 shares). V Muthiah, another member of the family branch has also divested part of his stake in Coromandel International.
TII Shareholding Trust has sold 34 lakh shares aggregating to 1.83% in the group subsidiary Tube Investments in the open market at a price of Rs 141.75 per share. Lion chunk of these shares had been lapped up by funds managed by HDFC for Rs 141.75 per share. The funds that picked up these shares include HDFC MF, HDFC Equity Fund, HDFC Prudence Fund, HDFC Balanced Fund, HDFC Mid-Cap Opportunities Fund and HDFC MF Monthly Income Plan.
