Vst Industries Disputes Damani Stake Claim

VST Industries Ltd (VST) has disputed the claim of Mumbai businessman Radhakishan S Damani that he and two others acting in concert have acquired more than five percent of the holding in the company.

In a letter to the Hyderabad Stock Exchange, VST said the company received a letter from Damani on September 8 stating that his holding, including holdings of persons in concert in the Company is more than 5 per cent of the share capital.

However, the holding of Radhakishan S Damani, along with the persons mentioned by him in his letter, including the shares lodged with the company till date ( September 14) "does not exceed the 5 per cent limit " to make the required disclosure pursuant to Regulation 7(3) of Sebi regulations. VST also enclosed copies of the correspondence exchanged between the company and Damani on the issue ever since the first letter dated September 4 was received from Damani stating that " our present holding (including holdings of persons acting in concert) in VST Industries Ltd is more than 5 per cent of the share capital of the company".

 

In response to VST's request for details of the holding, Damani replied back that his aggregate holding in VST "has crossed 5 per cent limit on September 2 " by taking into account the holdings of Bright Star Investments Pvt Ltd and Damani Estate and Finance Pvt Ltd. Damani did not, however, provide VST information regarding aggregate of shareholding as required under section 7(1) and also the date of acquisition for the purpose of computation of time period as required under SEBI regulations.

Meanwhile, the annual general meeting of VST today approved the resolution authorising the Board to raise Rs 50 crore by way of issues of redeemable preference shares to meet the present and future requirements of long term funds. According to a Company spokesman, the details including instrument, premium etc. were yet to be worked out.

As per the resolution, the Board could offer the preferential shares for subscription in rupees/foreign currency to shareholders/non-shareholders including overseas corporate bodies, through public issue, rights issue, private placement, preferential allotment or otherwise in one or more trances.

Company chairman A Basu told the meeting that VST's efforts to raise Rs 75 crore through a rights zero coupon fully convertible debenture issue was unduly delayed by the FIPB "despite BAT agreeing to stipulations made by it that it would revert to its current holding of equity within three years when there is buoyancy in the stock markets".