Fight over control of Hikal: Hiremath, family move HC against Baba Kalyani

A family fight over the control of chemical firm Hikal has erupted with Sugandha Hiremath and her husband moving the Bombay High Court against her elder brother Baba Kalyani and family.

The Hiremaths have asked the court to implement a family settlement of 1994 under which the Baba Kalyani faction has to sell their entire stake to the Hiremaths.

Both factions own 34 per cent stake each in the Rs 2,000-crore revenue company

In a filing to the stock exchanges, Hikal said the Hiremath family moved the courts against Babasaheb Kalyani, chairman and managing director of Bharat Forge, their investment companies, and family members.

The High Court will hear the petition on Friday.

Hikal said it did not expect any financial implications arising due to compensation, penalty, etc, due to the suit. 

“We understand that in so far as the company, as one of the defendants is concerned, the shares held by the Baba Kalyani Group in the company form a part of the subject matter of the suit and certain incidental reliefs inter alia restraining the company, in any manner, whether directly or indirectly, from considering KICL (investment firms) and BFIL as shareholders and/or permitting them either by themselves and/or their agents to transfer the shares held by them in the company, and/or permitting any application for purchase of shares of the company, except in accordance with the orders and directions of the Bombay High Court, are claimed against the company,” the company statement said.

Hikal shares closed flat at Rs 307 a share, giving it a total market valuation of Rs 3,800 crore.

Hikal was set up by the Hiremaths in the early 90s with a loan from the Kalyani family with a written understanding that Kalyanis would sell their stake to the Hiremaths. The buyback has not happened to date. 

An email to Baba Kalyani group on Thursday remained unanswered till the paper went to press. Baba Kalyani, too, declined comment on the Hikal litigation.