Promoters thwart DCM takeover bid
R. SURYAMURTHY

New Delhi, April 24: DCM Shriram Industries appears to have thwarted a hostile takeover bid by HB Stockholdings Ltd.

The promoters of DCM Shriram have increased their stake in the company to 40.71 per cent by converting the warrants allotted to them on a preferential basis earlier this month. DCM Shriram has allotted 9,45,000 equity shares of Rs 10 each at a premium of Rs 80 per share.

Sources said the company had informed the Bombay Stock Exchange (BSE) of the board’s decision. “These shares shall rank pari passu (equal in status) with the existing equity shares of the company,” a resolution taken by DCM Shriram said. HB Stockholdings has informed the BSE that it has increased its stake in DCM Shriram to 25.05 per cent through open market purchases.

Sick units

Centre takes over 4 tea gardens
R. SURYAMURTHY

New Delhi, Feb. 8: The Centre has taken over four tea gardens, two each in Bengal and Kerala, and called for expressions of interest from interested parties to run them.

This is the first time Section 16(E) of the Tea Act 1953 has been invoked to take over gardens. Section 16(E) allows the Tea Board to take over gardens that are lying closed for more than three months and find new owners.

The EoIs have been invited for two gardens in Jalpaiguri — Chinchula owned by Shimansu Vyaparik Kendra and Bamandanga Tondoo owned by Tondoo Tea Co. The two gardens in Kerala are Peermade and Lone Tree, both controlled by Peermade Tea Company in Idukki district.