Saroj Poddar, founder director and chairman of Gillette India, on Friday said after the recent order by the Securities and Exchange Board of India (Sebi), the Poddar Group, through its company, Poddar Heritage, would dilute 7.8 per cent of its 12.9 per cent stake in the shaving products company. This would be done through an Offer for Sale (OFS), jointly with multinational major, Procter & Gamble Co. (P&G), which would dilute 0.9 per cent of its stake. “I am the founder of this company. It was I who had appealed to Sebi to give a direction on the entire matter. After consultations, Sebi has finally come up with its order. So now, as per the regulation, I would have to dilute my stake,” said Poddar, who was here for the inauguration of a plant. “We would dilute 7.8 per cent and P&G would dilute its 0.9 per cent stake through a joint OFS. We have initiated the process with our investment merchant bankers for the same.
The entire process would be completed in the next two months,” he said. On September 26, the market regulator allowed Gillette India’s co-promoters, the Poddar Group, to be reclassified as public shareholders. The regulatory intervention was required as Gillette India failed to meet Sebi’s norm for a minimum 25 per cent public share holding. P&G and Poddar Group, through Poddar Heritage, hold 88.8 per cent stake in Gillette India. Commenting on the Kalindee Rail OFS, Poddar informed that considering the competitors’ aggressive offer, Texmaco Rail and Engineering – a Poddar Group arm, would increase its offer price from the previous Rs 68 a share to Rs 75 a share. “Our competitor, Jupiter Metal had revised the offer price slightly upwards from the Rs 68 we offered in July. So, we would raise our offer price. We are planning to make the offer price at Rs 75 a share,” said Poddar after the inauguration of Hettich India’s manufacturing facility near here. Poddar further mentioned that according to Sebi regulations, Texmaco would have to make an open offer for at least 26 per cent if its stake exceeded 25 per cent. The company aims to have 51 per cent holding in the rail services company after the OFS. Jupiter Metal had made a hostile bid for Kalindee Rail Nirman and acquired 15.63 per cent from the promoters at Rs 65 a share. Commenting on the stake sale issue with Vijay Mallya's UB Group over Mangalore Chemicals and Fertilisers, Poddar stated, “There is no progress on the issue. Things are as-it-is.”