sarwesh

MUMBAI: Investment firm HB Stockholdings' open offer to sugar manufacturer DCM Shriram Industries evoked poor response among shareholders as only 3.24 lakh shares were tendered, against 35 lakh on offer.

HB Stockholdings had made an open offer for acquiring 35 lakh fully paid-up equity shares of face value of Rs 10 each, but shareholders tendered only 3,24,657 equity shares aggregating to 1.87 per cent shareholding in the company.

However, the company has acquired 19,10,427 shares amounting to 10.98 per cent stake in DCM Shriram Industries seven days before the closure date of the open offer through market purchases route, the company said in a filing to the Bombay Stock Exchange.

Accordingly, HB Stockholding has 41,89,432 equity shares aggregating to 24.08 per cent stake in the company, DCM Shriram added.

However, if the open offer would have received full subscription HB Stockholding stake in DCM Shriram Industries would have increased to 54,54,348 representing 31.35 per cent stake.

The pre and post offer shareholding of the promoters of DCM Shriram Industries comprises of 70,81,992 shares amounting to 40.70 per cent stake in the company.

The expanded share capital of DCM Shriram Industries stood at Rs 17.39 crore pursuant to the allotment of 21 lakh equity shares upon conversion of 7 lakh share warrants.

However, the HB Stockholdings has filed a petition against the DCM Shriram Industries in respect of the said preferential allotment which is sub-judice before the Company Law Board.

Shares of DCM Shriram jumped as much as 15 per cent on the Bombay Stock Exchange and closed at Rs 86.50.