The promoters of media company Balaji Telefilms, the Kapoors, have offloaded 10.11 per cent to a group of five foreign funds. The move, according to the company, was to improve liquidity in the stock. The promoters have cornered around Rs 65.4 crore as a result of the stake sale.
The promoter's holding in the company now stands reduced to 57.80 per cent post equity dilution.
Ajay Patadia, company secretary, said, " The main reason for the promoters selling their equity shares at Rs 600 plus was not to raise funds but to broadbase the shareholding pattern and improve the floating stock in the market."
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It is understood from market sources that one of the foreign funds which has bought the shares are the US based Capital International. Another major foreign fund which has a big exposure to the company is the Singapore-based Alliance Capital.
According to information filed with the Bombay Stock Exchange, the transaction involved trading of 10.41 lakh shares, representing 10.11 per cent, at Rs 629 a share. which is at a discount of 0.8 per cent its previous close.
"There was concern among fund managers about the company's shareholding and the founders have reduced their holding to improve liquidity," company officials said.
US-based Capital International was among the buyers, sources said. Besides, Singapore-based Alliance Capital is among the funds which have a big exposure to the company.
According to analysts, Balaji Telefilms has acquired a leadership position in the television software industry in the recent times. In most of the major satellite broadcasting platforms in India and in DD metro, software produced by Balaji Telefilms is now attracting the highest television audience ratings.
The company's stock, however, took a beating on the back of heavy selling. The scrip opened lower at Rs 606.25, compared to its previous close of Rs 634. The scrip did well to recover, and jumped into the positive territory to touch an intra-day high of Rs 643. However, the scrip could not hold on the gains, as heavy selling pressure at these levels forced the scrip to plunge back into the negative territory.