Serial entrepreneur C Sivasankaran?s appetite for the food processing firms seems to be on the rise with the group?s stake in the Mumbai-based rice and flour miler Usher Agro touching close to 16%. As of March 31, 2011 two firms controlled by the Siva Group ? Aiwo and Siva, together hold a tad lower than 16% stake in the company.
Market is agog with rumours that the Siva firma may have to make a mandatory open offer for an additional 20% stake in Usher Agro since the firms holding had crossed the threshold 15% limit. Usher Agro closed on BSE on Thursday at R101.55, up by 9.5%. The stock has an yearly high of Rs 108.90 and an yearly low of Rs 51.
The Siva Group had reportedly picked up the Usher Agro stock from the open market at the prevailing prices at different time points. The Group started lapping up the Usher Agro stock from the markets since January this year. Group?s holding in the mid-cap food processing company stood at less than 2% as of the quarter ending December last.
In its latest regulatory disclosures, Aiwo Ltd said that the firm had picked up an additional 1.25 lakh shares in the Mumbai-based company from the open market, taking its total stake in the company close to 14. 5%. Another Group firm, Siva was already holding a tad over 1.5% stake in the company as of the quarter ending December last. Together, Aivo and Siva Holdings, the two Siva Group entities – now controls close to 16% stake in the Mumbai-based miller.
The Siva firms started picking stake in Usher Agro since the last quarter and Group had build up its position in Usher Agro to 16% purely through open market purchases. The Siva Group started betting big on agri-processing companies since the beginning of the current financial year. The Group currently holds significant minority stakes in another two food-processing companies Ruchi Soya and KS Oil. It also holds significant stake in the passive telecom infrastructure provider Sujana Towers.
Incorporated in 1996, Usher Agro is mainly into the business of food processing aided with latest technology back born. The company mainly focuses on rice and flour milling with plants in Uttar Pradesh and Bihar. Usher Agro had also branched out into the business of co-generation with captive power plants using green technology.
As of the quarter ending December last, the company had clocked a net sales of Rs 136 crore and clocked a net profit of Rs 8.9 crore. Usher Agro is a cash-flushed company with an equity capital of Rs 33 crore and a cash reserve to the tune of Rs 183.7 crore.