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JM Fin, group cos raise IVRCL stake

Nimesh Kampani-promoted JM Financial and its group firms have increased their stake to 5.04% in IVRCL with the acquisition of additional shares.

Nimesh Kampani-promoted JM Financial and its group firms have increased their stake to 5.04% in IVRCL with the acquisition of additional shares. In a statement to BSE, JM Financial Products and persons acting in concert, which together held about 4.59% equity, have informed that they increased their stake to 5.04% in IVRCL.

The statement mentioned that about 7,160 shares held as margin were released and 2.08 lakh shares were acquired from open market as a part of cash future arbitrage transaction, a BSE statement said.

It may be recalled that JM Financial has been counseling the Essel group for the acquisition of IVRCL shares. IVRCL was not available for any immediate comments. However, there are backdoor conversations, which say that IVRCL never approached Essel for stake sale or any kind of partnership.

On the other hand, Essel group is still waiting for the right valuation and is in negotiations leading to a murkier tussle. IVRCL shares were trading at R60.85, up 1.08% on BSE.

According to Essel group, the price sought for the promoters’ 11.2% stake was “manifold above” the then prevailing market price. Essel Group began accumulating shares of IVRCL, owned mostly by institutional and retail investors , and hiked its stake to 12.3% last month.

It is reported that IVRCL and Essel are at war of words over the appointment of UBS to negotiate a sale deal for IVRCL.

While IVRCL has denied this move, Essel stated that UBS had approached them with a proposal.

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First published on: 25-04-2012 at 00:23 IST
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