Promoters Ready To Buy Ici Stake In Asian Paints

The promoters of Asian Paints --- the Danis, Choksis and Vakils --- are ready to consider acquisition of the remaining 4.6 per cent equity of the company, still held by Kotak Mahindra Capital Co (KMCC) on behalf of UK-based paints major ICI plc, at the 'market price'.

Company vice-chairman, Ashwin Dani said, "4.5 per cent of the company's shares were sold off to UTI at a price of Rs 280 per share last week. It is unfair to expect the promoters to make good any part of the losses that the seller may have incurred."

Dani yesterday insisted that they had always intended to buyback the entire lot of shares earlier acquired by ICI plc at the 'market price'. The Asian Paints scrip was towards the end of yesterday hovering at around Rs 257.15.

 

Kotak Mahindra recently sold off the 4.5 % equity stake of Asian Paints , held on behalf of ICI plc, at Rs 280 per share to the Unit Trust of India. KMCC's Uday Kotak, however, clarified that they have not offered the remaining 4.6 per cent to the promoters of Asian Paints or any other buyer.

"No offer has been made at this point of time and no decision has been taken on the remaining (4.6 per cent) shares," Kotak said, adding, "Our dealings are with ICI UK and ICI India is not involved."

Having picked up the Asian Paints share at Rs 351 in August last year, ICI's selling price of Rs 280 per share amounted to a loss of about Rs 12.78 crore on half of the stake.

The loss got compounded by devaluation of the rupee from Rs 57 against the pound eight months ago to around Rs 66 on the day of the recent sale. This means that ICI has already lost about