Chhabria Bids For Majority Control In
Jumbo group chief Manu Chhabria has decided to acquire majority control of group engineering company Mather & Platt (M&P). The companys board will meet on June 28 to consider an increase in Chhabrias stake from 41 to 51 per cent through a preferential share issue.
The board will also consider the 1996-97 annual results and the proposed dividend at the June 28 meeting of the company which is a part of the Chhabria-promoted Rs 3,500 crore Jumbo group
Chhabria, through his holding company in Mauritius, Mather & Platt Mauritius, currently holds a 41.05 per cent stake in M&P which boasts a 1995-96 net turnover of Rs 82.68 crore. The public holds 41 per cent stake in the company, financial institutions
and mutual funds hold 8.43 per cent while the rest is held by other corporate bodies.
The proposed hike will see paid-up capital rising to Rs 17 crore from the current Rs 15.4 crore. Company sources say the stake hike will part-finance the modernisation plans and meet working capital requirements of the company.
M&P plans to plough Rs 4-5 crore into its plant at Pune during the current financial year and has chalked out an expansion plan of Rs 40 crore in the next three years. The company, which manufactures pumps, process machinery and security systems, plans to launch a range of products in pumps.
The company is also entering into a technical collaboration with a foreign company. Sources, however, declined to spell out the name of the collaborator.
M&P caters to the needs of power generation, petroleum, steel, metallurgical and food processing sectors. The companys net profit recorded a 51 per cent jump in the six-month period ended September 96, to touch Rs 2.68 crore.
Chhabria is following the preferential allotment route as the new takeover guidelines framed by the Securities and Exchange Board of India (Sebi) has restricted the number of options that promoters have to hike their stake.
Under the new Sebi takeover regulations of 1997, promoters can increase their holdings in existing company by three routes preferential allotment, rights issue or through creeping acquisitions of two per cent every year. Any other route will have to be followed up by an open offer to shareholders. and mutual funds hold 8.43 per cent while the rest is held by other corporate bodies.
The proposed hike will see paid-up capital rising to Rs 17 crore from the current Rs 15.4 crore. Company sources say the stake hike will part-finance the modernisation plans and meet working capital requirements of the company.
M&P plans to plough Rs 4-5 crore into its plant at Pune during the current financial year and has chalked out an expansion plan of Rs 40 crore in the next three years. The company, which manufactures pumps, process machinery and security systems, plans to launch a range of products in pumps.)The company is also entering into a technical collaboration with a foreign company. Sources, however, declined to spell out the name of the collaborator.
M&P caters to the needs of power generation, petroleum, steel, metallurgical and food processing sectors.
The companys net profit recorded a 51 per cent jump in the six-month period ended September 96, to touch Rs 2.68 crore.
Chhabria is following the preferential allotment route as the new takeover guidelines framed by the Securities and Exchange Board of India (Sebi) has restricted the number of options that promoters have to hike their stake.
Under the new Sebi takeover regulations of 1997, promoters can increase their holdings in existing company by three routes preferential allotment, rights issue or through creeping acquisitions of two per cent every year. Any other route will have to be followed up by an open offer to shareholders.