Apidc Sells 3.47 Lakh Raasi Shares To Icl

The A P Industrial Development Corporation (APIDC) sold on Saturday its holding of 3.47 lakh shares of Raasi Cements to India Cements at Rs 300 per share. This represents 1.86 per cent of Raasi Cements paid-up stock.

The APIDC Chairman, N Yethi Raja Rao confirmed the sale to Business Standard yesterday.

He said the decision to unload the shares was taken by the APIDC at its board meeting on Friday. The issue was not on the agenda, but since the board felt an attractive offer has been made by India Cements Ltd, it decided to disinvest the shares, he said.

Yethi Raja Rao disclosed that APIDC had offered the shares to Raasi Cements on February 21 itself at a price ranging between Rs 168-170 per share, which was the price being quoted in the stock market on that day.

Our executive director personally made the offer to the managing director of Raasi Cements. But there was no response. Meanwhile, the offer of Rs 300 per share by India Cements came to our notice and we decided to grab the opportunity, the APIDC chairman said.

It is learnt that the chairman of Raasi Cements, B V Raju, called on Yethi Raja Rao at the latters residence on Sunday morning and protested against the sale.

The APIDC chief explained the position and recalled that the Corporation had made the offer to Raasi first.

Raju reportedly told Rao that his people were busy buying shares in the Mumbai market and hence they could not pay immediate attention to this issue. Rao confirmed the meeting.

Asked if the decision to sell shares to India Cements was a political decision taken at the highest level, Rao replied in the negative. I dont think the chief minister is aware of the decision to sell the shares to India Cements. Rao asserted.

Meanwhile, some of the leading industrialists of Andhra Pradesh are understood to have met B V Raju over the past two days and expressed their solidarity with him in his bid to fight the take-over move by India Cements. They are also understood to hasve offered Raju short term finasncial assistance.

The Andhra Pradesh Cement Manufacturers Associations executive is also understood to have held an informal meeting here Saturday to dicuss the India Cements bid. Several members are understood to have expressed strong misgivings about India Cements bid to gain monopoly over cement manufacture in the South.

One member reportedly told the meeting that two months ago, India Cement unilaterally reduced the price of cement per bag from Rs 160 to Rs 140, thus forcing other smaller companies also to follow suit. If India Cements weas allowed to have its way, it would dwestroy all other cement units in the reghion, the member reportedly said. No decision was taken at the meeting.