Harish Bhasin, a leading Delhi-based stockbroker and promoter of HB Stockholding Ltd, has made a hostile bid to acquire DCM Shriram Industries.
Although, Bhasin has made the statutory commitment that he will not dispose off any assets in the company in next two years, sources said the acquirer was eying the huge land bank DCM Shriram has in different locations.
Bhasin has made a public offer to buy 3.5 million DCM Shriram shares, equivalent to a 22.88 per cent stake, at Rs 70 per share. Bhasin already holds 12.87 per cent in the company. If the open offer is fully subscribed, Bhasin’s stake in the company will rise to 35.75 per cent, higher than the promoters’ current holding of 32.54 per cent.
Tilak Dhar is the chairman and managing director of DCM Shriram, Alok B Shriram deputy managing director and Madhav B Shriram a whole-time director.
DCM Shriram started bleeding after the ban on sugar exports. The company, engaged in the businesses of sugar , alcohol, organic chemicals and industrial fibres, incurred a loss of Rs 7.4 crore in the first half of 2007-08 on a turnover of Rs 283 crore. In 2006-07, it managed to post a profit of Rs 1.58 crore on revenues of Rs 633.49 crore.
In the late 1990s, Bhasin had made an unsuccessful attempt to acquire Jaiprakash Associates after buying over 10 per cent stake in the company.