Nirma Offers Rs 45 For Gujarat Heavy Chemicals Share

The battle for Sanjay Dalmia-owned Gujarat Heavy Chemicals Ltd (GHCL) has taken a new twist with Nirma raising its offer price by Rs 5 to Rs 45 per share.

The detergents major has informed Gujarat Industrial Investment Corp (GIIC) that it is willing to pay up to Rs 45 per share to lure GHCL promoters and GIIC into selling their combined 41 per cent stake in the company to Nirma. GHCL promoter Sanjay Dalmia had rejected Nirmas earlier offer of Rs 40 per share.

Sources said the move shows Nirmas determination to buy into GHCL, which produces crucial raw materials like soda ash. Although Nirma is now putting up a soda ash plant, industry sources say the plants eventual per tonne production cost will be higher than the cost from GHCLs well-depreciated plants.

 

Meanwhile, Nirma has increased its holding in GHCL by buying an additional 40 lakh shares. After transfer, Nirmas holding in the company will rise to 7.5 per cent from 4.5 per cent. GHCLs equity base consists of 9.3 crore equity shares.

Nirmas 7.5 per cent holding crosses the five per cent limit imposed by the Securities and Exchange Board of India on acquisition of shares in other companies. Market observers say Nirma will soon have to inform the stock exchange about the purchase. Nirma had earlier bought 30 lakh shares from the open market and has sent them for transfer.

The fresh purchases, which were made in the past week, were routed through Nirma Credit Capital. According to sources, Nirma took advantage of the no-delivery period in the GHCL scrip which began on August 4 to mop up 70 lakh shares, estimated at over Rs 8 crore. The no-delivery period ends on September 1. GHCLs book closure in on September 2. Nirma Capital chairman Kaushik Patel was not available for comment.

Contacted in Delhi, Sanjay Dalmia told Business Standard that he was unaware of Nirmas purchases during the no delivery period, but maintained that he still holds a controlling stake in the company. Today, I am not interested in selling GHCL at any price, he asserted.