Dabur promoters buy more stake in Punjab Tractors

The Burman family has increased its stake in Punjab Tractors to 12.5 per cent by buying an additional one per cent from the open market in the last one month, which brings it closer to making the mandatory open offer for picking additional stake.

"We have increased our stake in Punjab Tractors to 12.5 per cent by buying an additional one per cent stake from the open market," a senior company executive confirmed.

If the Burmans, who control FMCG major Dabur, hike their stake by another 2.5 per cent, they will have to make the mandatory open offer.

Asked if the Burmans were in talks with private equity firm Actis its buying it over fully or partially in the company, the official declined any comment. "Such things cannot be discussed in the media. These things are strategic and confidential and I cannot confirm on the way forward," the official said.

Actis is the largest stakeholder in the company with about 29 per cent while Burmans "" who made their first purchase in PTL in November last year "" hold around 12.5 per cent through their multiple investment companies.

The Burmans have so far forked out around Rs 175 crore for the shareholding in the tractor company.

Looking to play an active role in the functioning of the company, the Burmans had appointed Dabur India Group Director P D Narang as the family's representative on PTL's board as non-exectuive independent director.

It is speculated that Burmans and Actis may team up to effect top-level management changes in the company at its board meeting this month.