Lodha associates force polls at Pilani AGM

The tussle between the Birlas and Lodhas took a new turn on Thursday as associates of Rajendra Singh Lodha, who is now chairman of Birla Corporation, demanded a poll on all the resolutions placed for shareholders' approval at the Pilani Investment and Industries Corporation annual general meeting (AGM).

P K Khaitan, a director of Pilani Investment, told mediapersons after the AGM that a few associates of Lodha demanded poll on all the seven resolutions. Birla group sources said the associates included Birla Corporation company secretary and S K Daga, a close associate of Lodha.

The results of the polls were expectedly in favour of the Birla family as 72 per cent votes were cast in favour. The minority shareholders demanded poll on all items including re-appointment of K K Birla and B K Birla.

The Pilani AGM comes close on the heels of the Birla Corporation AGM held last week, where Lodha was at the receiving end, as minority shareholders forced a poll on all the resolutions.

The M P Birla group holds 25 per cent in Pilani. The shareholding pattern of Pilani indicates that the M P Birla group is no longer classified as a promoter group. Khaitan said when disclosures were filed last year, the group did not send a declaration to be classified as promoters.

The AGM also assumes significance as it follows the acquisition of shares by the B K Birla group. Pilani, the crown jewel in the Birla family, is now controlled by the B K Birla-Aditya Birla combine which holds more than 50 per cent in the company, after Aditya Marketing, B K Birla family company bought out G P-C K Birlas' shares in Pilani.

Khaitan said the B K Birla group will not have to make an open offer for 20 per cent in Pilani, to conform to Sebi guidelines, as it was an inter se transfer of shares.

The company has submitted a report to Sebi for listing shares on the Bombay Stock Exchange (BSE) IndoNext. Khaitan said there were some suggestions and the company has submitted a report to the market watchdog. The proposal would be taken up at the board meeting of the company scheduled for end-October.