Financial Daily from THE HINDU group of publications
Friday, Mar 24, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 24, 2006 |
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Markets
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Stocks Eastern Silk shareholding undergoes dramatic change Jayanta Mallick
Stakeholders United India Assurance, GIC pick up stake 2 group outfits merger plans to change shareholding pattern further
Kolkata , March 23 Standard Chartered Trust Co has completely exited Eastern Silk in the current quarter, while United India Assurance and GIC have picked up stake in the company during the period. These developments took place before the amalgamation of two group outfits into Eastern Silk. The proposed merger would further change the shareholding pattern of the company as the company would be allotting fresh shares to the promoters and other stakeholders of the two companies being merged with Eastern Silk. Standard Chartered Trust, through Standard Chartered Premier Equity Fund, has offloaded 4.88 per cent stake in pre-merger Eastern Silk since January 1. GIC and United India now hold 1.7 per cent and 5.4 per cent respectively (of the pre-amalgamation total number of shares of 71.51 lakh of Rs 10 each) following their recent acquisitions, understood to be through market deals. The Eastern Silk board will meet on March 31 to make fresh issue of 63.39 lakh shares of Rs 10 each.
Amalgamation effect
The enlarged equity would increase the shareholding of the promoters of the merged entity to around 55 per cent from 27.63 per cent, pre-merger. The promoters' holding in the to-be-merged Eastern Jingying is 80 per cent; in Stella Silk it is 17 per cent. If no further buying or selling takes place, post-merger United India's current holding of 5.4 per cent would come down to 2.9 per cent, while SBI Mutual Fund's holding would decline to 2.96 per cent from 5.59 per cent. National Insurance and GIC's holdings would drop to 1.1 per cent (2.1 per cent) and 1.7 per cent (3.24 per cent) respectively.
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