Promoters Pie In Snowcem Dips To 38% In 3 Quarters

Mumbai, October 28: | Updated: Oct 29 2002, 05:30am hrs
The promoters holding in Snowcem India Ltd has substantially gone down to 37.97 per cent from 45.25 per cent over the past three quarters. This indicates that the promoter of Snowcem, TB Ruia, has been reducing the stake in a phased manner.

During the quarter ended December 2001, the promoters stake stood at 45.25 per cent while in the next quarter March 2002 it came down to 42.55 per cent. In the quarter ended June 2002, the stake further came down to 41 per cent while during the quarter ended September, 2002, the holding stood at 37.97 per cent.

In the last nine months, the holding of Kosha Investment Ltds (one of the holding companies) stake slipped to 13.62 per cent from 20.89 per cent. However, 17.88 per cent holding of the foreign promoter George Lillington Company Ltd remained same.

Officials at Snowcem India Ltd were not available to comment on the issue, even after repeated attempts by FE.

However, the decline in the promoters stake can be viewed in relation to the companys recent decision to exit from the exterior paints business.

The company is currently negotiating with Berger Paints India Ltd to sell its paints business (including the intellectual property rights).

For the process of negotiation, the company has signed a non-binding term sheet with Berger Paints India Ltd which is subject to the approval of the board.

NM Rothschild & Sons (India) Ltd are advising Snowcem on this transaction.

The company has three plants spread across the country at Gotan in Rajasthan, Sinnar (Nasik) in Maharashtra and Gummidipundi in Tamil Nadu. Snowcem India has a large distribution network of over 3000 dealers.

Snowcem had recorded an EBID&T of Rs 22 crore on a turnover of Rs 120 core for the year ended March 31, 2002. The net profit for the same period was Rs 10.75 crore translating into an earning per share (EPS) of over Rs 10.

Snowcem Indias brand portfolio includes Snowcem Plus, Sandtex Matt, Snowcryl XT, Uni-Gloss, Trumph and has recently launched Sandtex Smooth.