Tatas Up Stake In Voltas By 3.23% Via Creeping Way

The Tatas have increased their holding in Voltas by 3.23 per cent to 23.27 per cent through the creeping acquisition route in the nine months of the current fiscal 2001-02.

Voltas has been facing a takeover threat from Bahubali Shah of Gujarat Samachar who has a substantial stake in the company. During March-December, private corporate bodies (PCBs') increased their holding simultaneously. PCBs, which were holding 10.92 per cent as on March 31, 2001, hold 14.98 per cent stake as on December 31. It had increased to 15.15 per cent during June-September.

Company secretary V P Malhotra, however, said that though the corporates have increased their holding in the last few months, Gujarat Samachar's stake in the company remains unchanged at a shade over 13 per cent. Gujarat Samachar bought the shares from the open market at Rs 40-42. According to the Securities and Exchange Board of India (Sebi) guidelines, the acquirer will have to make an open offer to public shareholders after it crosses the threshold limit of 15 per cent.

The shareholding pattern of Voltas as on December 31 indicates that promoters have 23.27 per cent, mutual funds and Unit Trust of India is at 2.28 per cent, banks, financial institutions (FIs), insurance companies at 25.89 per cent, foreign institutional investors (FIIs) have a paltry 0.01 per cent, PCBs 14.98 per cent, Indian public 32.4 per cent and non-resident Indians along with overseas corporate bodies at 1.17 per cent.

Analysts tracking the company said, promoters increased their stake to thwart a possible open offer from Gujarat Samachar.

The Voltas scrip today touched a high of Rs 46.90 before closing at Rs 45.05 on the Bombay Stock Exchange (BSE) and at Rs 45.35 on the National Stock Exchange (NSE).

Voltas has been restructuring its operations, which saw the company exit all its non-core businesses and consolidate its core business. It has sold its thermostat business, chemicals unit to a group company and hived off part of the bleeding white goods into a joint venture with Electrolux.

Last year, Voltas merged Voltas International with itself so that it would facilitate raising finances needed to undertake large contracts on better terms. Voltas, has bagged its largest overseas contract of Rs 225 crore for an electromagnetic work in Qatar.