JM Financial hikes its stake in IVRCL

JM Financial group has increased its stake in Hyderabad-based IVRCL Limited from 4.59 per cent to 5.04 per cent by acquisition of an additional 1.2 million shares.

The Mumbai-based financial group informed the stock exchanges on Tuesday that it had acquired additional shares of IVRCL on April 19 following which its equity holding in the infrastructure company has gone up by 0.45 per cent.

It stated that JM Financial Products Limited had created encumbrance of one million shares held as collateral to secure loans sanctioned. At the same time, another group company, JM Financial Services Limited released encumbrance on 7,160 shares held as margin and acquired 208,000 shares from open market.

 

IVRCL was in the news, of late, following Subash Chandra-promoted Essel group picking up 12.27 per cent equity holding in the company, which was higher then that of the promoters holding of 11.18 per cent.

This lead to speculations about a possible hostile takeover. However, Essel subsequently stated that it doesn't intend to further raise its equity holding in IVRCL.

IVRCL stock price on Tuesday closed at Rs 60.85 on the BSE, up 1.25 per cent over the previous day's close of Rs 60.10.