The Chennai-based Rs 14,000-crore Murugappa Group, with interests in a wide array of business verticals spanning from fertilisers to finance, has pared its stake in group company Tube Investment of India (TII) by a tad over 1%. This goes against the group?s strategy to consolidate its holding Tube Investment of India.
TII Shareholding Trust, one of the investment companies of the Group, has sold 10 lakh shares of TII at a price of Rs 140 per share on the National Stock Exchange (NSE) on Monday. The sale price is a premium of Rs 1.15 over the close price of Rs 138.85 on NSE on Monday. On Tuesday, the stock closed on NSE down by 1.84% at Rs 136.30.
The equity dilution, however, would not have much of an impact on the promoters’ holding in the company. Promoters were holding 51.72% stake in TII as of the quarter ending June this year.
According to information available with FE, TII Shareholding Trust had sold 1.05% stake in TII through the bulk window on NSE on Monday mopping up close to Rs 14 crore in sales proceeds. However, who had bought the shares from TII Shareholding Trust is not immediately known. TII Shareholding Trust held over 44 lakh share in TII aggregating to 2.38% of the paid up equity capital of the company. Post sales, the Trust’s holding in TII would come down to 1.33%. ?There wont be any major material impact on the promoters holding after the Trust sold a part of its stake in TII. Promoters holding in the company is well above 50%?, an analyst with a local brokerage house said.