| The B K Birla group has picked up the entire stake of Industrial Promotion & Investment Corporation of Orissa (IPICOL) in Mangalam Timber Products.
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| IPICOL had around 5.35 per cent stake in the B K Birla outfit which it acquired through its initial public offer in 1986. G S Gupta, managing director of Mangalam Timber, said Kesoram Industries, one of the promoters of Mangalam Timber, had purchased the shares from IPICOL. “The deal is of around Rs 2 crore at Rs 20.31 a share,” he said.
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| According to Gupta, after the buying of IPICOL’s stake, B K Birla group is now have around 21 per cent in Mangalam Timber. The group holds the stake through Kesoram, Century Textiles and Jayashree Tea.
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| Gupta also claimed that Mangalam Timber is in a turnaround phase. “We have made profit in the first half and would end the year in the black,” he added.
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| Incidentally, Mangalam Timber restructured its debt in December 2004. It adjusted losses by reducing the paid up equity from Rs 10 to Rs 4.
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| “We have cleaned the balance sheet through this exercise. We have adjusted Rs 11 crore through the process against an accumulated loss of around Rs 18 crore,” he added. |
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