 "Kesoram sells investments worth Rs 400 cr to Pilani Investments")
The investments were sold to NSE-listed Pilani Investments by way of bulk deals on the BSE on Tuesday morning. Kesoram sold investments in Century Textiles (27.5 lakhs shares), Century Enka (13.4 lakhs shares), Mangalam Cements (38.2 lakh shares), Mangalam Timber (25.3 lakh shares), Aditya Birla Fashions (31.9 lakh shares), AB Nuvo (6.14 lakh shares) and Grasim (1.4 lakh shares).
Kesoram shares rose 3.68% to Rs 96 a share on Tuesday morning trades. The company is in transition, with Aditya Birla group chairman Kumar Mangalam Birla taking key decisions for the company as his ailing grandfather takes a back seat.
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On February 17, Kesoram announced that the Aditya Birla group was raising its stake in Kesoram Industries to 50% from 46% by way of a preferential share issue. Kesoram is the second B K Birla group company after Century Textiles in which Kumar Mangalam Birla-owned promoter companies are raising their holdings.
B K Birla has said in the past that Kumar Birla would take charge of his group companies after him.
In September last year, Kesoram had sold its tyre unit to Singhania family-promoted JK Tyre for Rs 2,200 crore. The acquisition is expected to help JK Tyre, the country's third largest player by revenue, to strengthen its position in the industry and enter the two-wheeler and three-wheeler tyre market.
The company has reported losses for last four years due to high interest burden. Analysts said Kesoram and Century Textiles would merge their cement operations with Aditya Birla group’s Ultratech, a move that has been denied by the Aditya Birla group.