Ge Caps Eyes Stake In Anagram

After its bid to acquire SRF Finance, GE Capital is now eyeing a controlling stake in Anagram Finance, the finance arm of the Sanjay Lalbhai group.

GE Caps has started the due diligence process to this effect and was talking to promoters of Anagram Finance, merchant banking sources said here yesterday.

No conclusions have been arrived at as discussions are on and several prospects are being looked into, group vice-president (finance) of Lalbhai group Jayesh Shah said over telephone from Ahmedabad without confirming their talks with GE Caps.

Anagram Finance is a leading non-banking finance company with a substantial presence in Gujarat. Japanese trading major Marubeni also evinced interest in Anagram.

 

Marubeni did show some interest in the company but later pulled out considering the prevailing market conditions for the NBFCs, the sources said.

Anagrams has a substantial presence in auto financing, industry experts said adding GE Caps has a 55 per cent stake in Countrywide Finance, which it set up with HDFC for auto and consumer durable financing.

In a prestigious venture, GE Caps had signed a memorandum of understanding with the State Bank of India (SBI) for a foray into the credit card business.

GE Caps has had a long history of acquisitions and it in fact wanted to acquire 100 per cent stake in Arun Bhagat Ram controlled SRF finance, which was rejected by the finance ministry on the ground that only holding companies can set up 100 per cent subsidiaries. It later scaled down its acquisition and made to public offer to acquire shares as per the Sebi guidelines.

Anagram Finance, reported a net profit of Rs 34.4 crore for 1996-97 as compared to a higher net profit of Rs 44.7 crore though its turnover increased to 280.14 crore from 191.75 crore. The companys interest expenses grew last fiscal and there was also a net tax outflow of 3.5 crore.

It is currently being traded in the range of 32 to 33 on the Bombay Stock Exchange (BSE).