Birla raises stake in Century Textile

This raises stake of Kumar Mangalam Birla family stake by around 8%

The finance committee of the Century Textiles board of directors have allotted 8.47 million shares to the promoter companies  today thus increasing the stake of Kumar Mangalam Birla family stake by around 8 per cent in the company. The promoters currently own 40% stake in the company and the promoter companies were allotted warrants on preferential basis in June 2014 and had paid 25% of the subscription money.

The promoter companies paid balance 75% of the warrant price and have requested conversion of warrants into equity shares.The company was earlier managed by BK Birla, Kumar Mangalam's grand father but due to advanced age, its Kumar Mangalam Birla who is now leading the company.

As reported by this newspaper earlier, Century is looking at a proposal to demerge its cement division in lieu of shares of Aditya Birla group's Ultratech. The 13 mtpa cement capacity has been valued at Rs 10,500 crore.