Murugappas Dilute Stake In Carborundum Universal

Chennai, March 16 | Updated: Mar 17 2004, 05:30am hrs
The Chennai-based Murugappa group has diluted its stake in one of the group subsidiaries Carborundum Universal Ltd (CUMI). The group has sold a tad over two per cent stake in the venture.

In a filing with the National Stock Exchange (NSE), New Ambadi Estates Pvt Ltd, Murugappa groups investment arm, along with its wholly-owned subsidiary and a few other group companies, have together sold 1,87,992 equity shares constituting 2.01 per cent of the paid-up equity capital of CUMI. The group has reportedly sold the CUMI shares in the open market.

However, further details about the stake sale is not known.

Company officials were not available for comment.

Murugappa group through its subsidiary companies were holding 37.44 per cent stake in CUMI as of December last. While AMM educational foundation was holding 2.04 per cent stake, Mr MA Alagappan was holding 1.21 per cent stake. The New Ambadi Estates was holding 7.86 per cent, Parry Agro Industries had 25.02 per cent stake in CUMI and Southern Energy Development Corporation Ltd was holding 1.31 per cent stake.

CUMI is a leading manufacturer of abrasives and has a strong presence in the southern markets.

The company has been on a restructuring mode for quite some time. It had increased its stake in its subsidiary CUMI Australia Ltd to 51 per cent for a consideration of AUS$0.5 million (Rs 1.50 crore).