Zuari Industries Ltd, a K K Birla group firm, has sought shareholder approval to increase its stake in group firm Chambal Fertilisers and Chemicals Ltd (CFCL) by 1 per cent.
The move is perceived as an example of transparency when the companies across the globe are mired in controversy for withholding information from shareholders. Zuari Industries will place a special resolution at its forthcoming annual general meeting to increase its stake in CFCL. The company has also spelt out the approximate cost of acquisition. It will be setting aside Rs 5 crore for purchasing 40 lakh shares at Rs 12.5 a piece. This price is above the ruling market rate of the stock. CFCL today closed at Rs 10.45 on the BSE. The company said that the proposed acquisition of 40 lakh shares for a maximum of Rs 5 crore will be funded through internal accruals and borrowings.
The acquisition of 40 lakh shares, which represents nearly 1 per cent stake, will help Zuari scale up its holding in CFCL to 14.23 per cent and in turn, the group