Kolkata broker picks up over 5% in GIC Hsg

Kolkata-based broker Chandra Vadan Desai has picked up over five per cent stake in GIC Housing Finance Company.

State owned financial institutions that constitute the promoter's block in the GIC Housing Finance have 46.02 per cent stake, while other institutions has about 2.4 per cent share as on September 30, 2004.

The company has large public holding of 32.29 per cent. Desai's firm CD Equisearch had 2.95 per cent then in the company. Market sources said Desai's average acquisition cost is in the range of Rs 22-23. The stock today traded ranged bound, gaining only Rs 0.15 to close at Rs 29.60.

It can be recalled Desai has substantial stake in number of companies; most notable among them are Maharashtra Scooters, West Coast Paper, Sirpur Papers and IPCA Labs.

Desai holds about 5 per cent stake in Maharashtra Scooters and West Coast Paper. His holding in IPCA lab is 2.5 per cent and Sirpur Paper is 4.5 per cent.

Experts said GIC Housing Finance is a good long term story even as it's paid capital was increased in October this year by issuance of one rights share for every two shares held.

It mobilised Rs 14.36 crore by the issue to meet capital adequacy ratio of 12 per cent in order to support its ambitious growth plans.

During the first half year of this fiscal it posted a 53.26 per cent increase in net profit at Rs 7.28 crore.