Kesoram to buy back shares

KOLKATA, MAY 4. Almost after a month of acquiring over 1.41 per cent equity shares from open market operations, the Rs. 1,345 crore BK Birla group flagship Kesoram Industries today announced its intention to buy back another 15 per cent shares from the existing shareholders.

``The board today decided to buy back up to 78.42 lakh ordinary shares of Rs. 10 each constituting 15 per cent of the paid-up ordinary share capital of the company from the existing shareholders," Kesoram Industries senior president (finance and taxation), Mr. S. K. Parik, said. The company will buy back the above shares at a maximum price of Rs. 40 only, Mr. Parik said.

Incidentally, the Kesoram scrip yesterday closed at around Rs. 26 on the Calcutta Stock Exchange after touching a low of Rs. 19 only a few days back. The scrip had touched a high of Rs. 65 in February last on the CSE on reports of huge cornering of the company's shares by a Dubai-based non-resident Indian.

Mr. Parik said the directors at their meeting today also accepted a report prepared by PricewaterhouseCoopers regarding the proposal of merger of Hindustan Heavy Chemicals (HHCL) and Birla Century Finance (BCFL) with the company. He said after the proposed amalgamation of HHCL with Kesoram, the shareholders of the former will get one equity share of the latter for every five shares held. For BCFL shareholders, Kesoram will issue one secured debenture of Rs. 105 each for every ten BFCL share of Rs. 10 each.

Mr. Parik said the secured debentures to be issued to BCFL shareholders would carry an interest of 12 per cent. After the proposed buy back, the promoters' stake in the company would increase to 36.41 per cent, he said.

Mr. Parik said the board at its meeting also accepted the resignation of one of its directors, Mr. K. K. Khemka, who was also assigned the job of manager. Mr. Khemka had resigned with effect from today. Mr. Parik himself was coopted as director in place of Mr. Khemka while Mr. K. C. Jain, senior president (cement sections) was appointed manager.

- PTI

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