HB Holdings hikes stake in DCM Shriram

Investment firm HB Stockholdings, which made a hostile takeover bid for DCM Shriram Industries Ltd, today said it has increased its stake in the sugar producer to 21.46 per cent through open market transactions.

Delhi-based HB Stockholdings, promoted by Harish Bhasin, now holds 32.82 lakh of equity shares in DCM Shriram Industries (DSIL) which amounts to a 21.46 per cent, the company informed the Bombay Stock Exchange.

HB Stockholdings had earlier made a hostile takeover offer to DSIL to buy a 22.8 per cent stake in the company at Rs 120 a share. The offer to acquire 35 lakh DSIL shares is scheduled to open on January 3 and close on January 24, 2008.

Last week, DCM Shriram announced that it had alloted seven lakh share warrants to its promoters at a price of Rs 90 each.

DSCIL shares gained 1.6 per cent (or Rs 2) to close at Rs 127 on the BSE on Monday. HB Stockholdings' hit the upper circuit in trading and closed at Rs 112.80, up nearly five per cent (or Rs 5.35) on the BSE.