Southern Petrochemicals Industries Corporation (Spic), the AC Muthiah flagship company, has sold 1.44% out of 1.46% stake it held in Sical. The deal, which was completed late last week at a price of Rs 66.77 per share, brought in Rs 3.81 crore.
As of the quarter ending June 2010, Spic was holding 5.76 lakh shares or 1.46% stake in Sical. Post sale, Spic?s holding in the company has come down to a paltry 0.02%. The reason behind the company?s sudden decision to sell a majority of its stake in Sical is not immediately known.
Sical is the only company under the AC Muthiah group in which promoters have not pledged their stake so far. Promoters hold close to 47% stake in the company. IDFC, through its investment vehicle, IDFC Infrastructure Fund, is the second largest shareholder in Sical with a 13.28% stake.
The other major non-promoter shareholder of Sical includes the Royal Bank of Scotland through its India focused funds – Jupiter India Fund (4.77%) and South Asia Access Fund (3.37%).
Spic sources were not available for comment immediately.
According to sources, Spic has been selling its stake in various concerns to raise money to finance its on going corporate debt restructuring (CDR) package being implemented under the aegis of the Asset Reconstruction Company of India Ltd (Arcil), which holds close to 85% of the over Rs 4,000 crore debt of Spic.
The cash-strapped company had recently sold its entire 52.17% stake in Indo-Jordan Chemicals Company to its joint venture partner Jordan Phosphate Mines Company for a consideration of $50.6 million (Rs 230 crore approximately). Spic reportedly ploughed back the sales proceeds to revive its the company?s sagging fortunes.
?Spic may have sold the stake in Sical to raise funds for its own rehabilitation package. Despite the managements assurances the company was not able to restart the production in Tuticorin complex,? a source told FE.