Sarda group acquires 4% in GIC Housing

Big-time Kolkata investors on the prowl again

Kolkata-based jute industrialists and big-ticket operators are back in the stock market with a bang. The latest addition to the bandwagon is the Sarda group, which announced the acquisition of over 4 per cent stake in GIC Housing Finance. Jute baron Arun Kumar Bajoria had, on Tuesday, declared his holding of 3.5 per cent in Balaji Telefilms.

Big ticket members of Lyons Range are also very active. Shyam Sunder Dalmia picked up over 10 per cent stake in Texmaco, while Chandra Vadan Desai acquired over 5 per cent stake in West Coast Paper Mills and 2 per cent in Graphite India. Desai has also substantial holding in Sirpur Paper and Andhra Pradesh Paper Mills.

In addition, jute industrialist J K Kankaria and Kaushal Kumbhat, who run a management consultancy firm, had expressed interest to acquire state government's stake in Maharashtra Scooters and Andhra Pradesh Paper Mills, respectively.

Ghanshyam Sarda, of the Rs 1,000 crore Sarda group, said the investment in GIC Housing Finance was long-term.

He said the group will keep on acquiring shares, obviously at "right prices." Arun Bajoria, on Tuesday, made it clear that he acquired some 17-18 lakh shares, representing 3.5 per cent in Balaji Telefilms for investment purpose. Desai and Dalmia had expressed views indicating that their acquisitions were meant for investment.

Analysts said the acquisitions were cherry picking by entities, meaning that each individual found sense in investing in these stocks. Sarda, who has also interests in real estate and IT, said the global trend indicated a great time for housing finance companies.

"The housing finance industry in India has got only one way to go: up and up. Investment in GIC Housing Finance will turn out to be highly rewarding," he said.

Desai had explained to Business Standard that carbon electrode industry and paper industry are in for great times.

In addition, he said, management of Graphite India and West Coast were in the process of taking the companies to new highs. Dalmia said the future outlook of Texmaco, which was being positioned as a structural engineering company from a wagon maker, looked very bright.

Lyons Range veterans said the city never had dearth of funds. The volume of local badla market was Rs 500 crore, including unofficial badla, in the heydays of Ketan Parekh.

"After the 2001 scam, local funds went out off the ring. Now the market is stable, and players are entering the ring. This time, they are investing in fundamentally good firms," they added. The trend indicated that more local players may be picking up big chunks in the months to come.