The Mulchandanis-promoted Baron International has deferred its plan to come out with an initial public offering (IPO).
"We have decided not to go ahead with the IPO at this juncture because of the current market situation," said Shakun Mulchandani, chairperson of Baron group.
Baron International, the consumer electronics distribution company, distributes the Aiwa range of audio and colour televisions. The Japanese consumer electronics manufacturer has a five per cent stake, while a 20 per cent stake has been offloaded to Prime Securities a few months back. The balance stake is held by the Mulchandani family.
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A Prime Securities official said, "We have picked up a 20 per cent stake in Baron International and currently do not have any plan to offload the stake, despite the consumer durable industry going through a slowdown."
On the other hand, Aiwa had plans to increase its stake further in the Indian operations. "Aiwa is looking at doubling its stake to 10 per cent, but with the company undergoing a major restructuring exercise globally, it is for them to make up their minds," Mulchandani added.
Aiwa, earlier positioned as a low-priced brand, has changed its strategy and is now targetted at the mid-to-premium segment. The company has a distribution network of 3,500 dealers.