Mauritius Firm Eyes 11.24% In Shalimar Paints

The Mauritius-based investment company, Hind Strategic Investment, has proposed to acquire 11.24 per cent of the O P Jindal-controlled Shalimar Paints.

The deal under private arrangement with Jindal Strips Ltd will be an inter se transfer. After the aforesaid acquisition the holding of Hind Strategic Investments along with PAC's in Shalimar Paints will increase from 19.94 per cent to 31.18 per cent. Jindals and Hong Kong-based Girish Jhunjhunwala, owner of Hind Strategic Investment, together hold 62.3 per cent. Financial institutions have 18 per cent and the balance is being widely held by public.

The date of proposed acquisition is October 29, 2001 at Rs 36 a share. Shalimar Paints' scrip today closed at Rs 28.50 on the Bombay Stock Exchange (BSE) and at Rs 32 on the National Stock Exchange (NSE).

S L Agarwal, managing director Shalimar Paints was not available for comment.

A little under a year ago, Shalimar Paints was believed to be on the blocks and a large number of leading Indian paints manufacturers were seeking to acquire the company.

According to industry sources, the negotiations between Shalimar Paints and the companies that evinced interest failed because the buyers offered unattractive prices. Among these companies was the Johannesberg-based Barlow with interest in paints, pharmaceuticals, varnish and coal mines.

Shalimar Paints has brands like Superlac (first quality synthetic enamel), Diamond (second quality synthetic enamel), Superlac Acrylic Premium ( premium synthetic enamel) and of course Hussain named after the famous painter, M F Hussain.

In the Rs 2,500 crore paints industry, Shalimar Paints has a very small market share and is primarily known for its marine paints in the industrial paints segment. While Asian Paints is the leader in the decorative segment, Goodlass Nerolac enjoys maximum market share in the industrial paints segment.