The custodian appointed by a special court is putting Harshad Mehta's approximately 11 per cent shareholding in ACC under the hammer. These 16.2 million shares are valued at Rs 300 crore at current market prices.
The custodian has also put on the block 1.25 million shares of exterior paints maker Snowcem.
The custodian has asked prospective bidders to file their offers by October 8. The special court, after ascertaining the highest offer, may give an opportunity to the ACC management to buy back the shares.
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This is the last round of selling securities held by the late Mehta. So far, the custodian has raised over Rs 750 crore through the sale of various blue chip stocks, including those of Reliance, ITC, Hero Honda and Apollo Tyres. It will soon kick off an auction for Mehta's real estate holdings, which can fetch up to Rs 100 crore.
At present, Gujarat Ambuja Cements holds a 14.3 per cent stake in ACC, while LIC holds 16.17 per cent as on June 30, 2003. The public holding in ACC is pegged at 34.81 per cent, while foreign institutional investors hold just over 10 per cent.
Market sources feel that Gujarat Ambuja is unlikely to bid for the ACC shares. If it wins the bid, it will have to come out with an open offer for an additional 20 per cent stake, as per the takeover regulations of the Securities and Exchange Board of India (Sebi).
The Life Insurance Corporation (LIC), along with a few public sector banks, is reportedly keen on putting in bids for the ACC shares.
ACC