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Promoters And Investors On Share Buying Binge

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Deepak Korgaonkar BUSINESS STANDARD
Last Updated : Jan 28 2013 | 1:12 AM IST

Promoters and strategic investors acquired 109 million shares in 85 companies during the first half of 2002-2003, according to information provided to the Bombay Stock Exchange (BSE).

These promoters and strategic investors disclosed their acquisitions to the exchange between April-September 2002. The current market value of the acquisition of 109 million shares works out to Rs 402 crore.

This could be by far the biggest transfer of stakes in a half year, both in terms of the number of companies involved and in terms of the shares changing hands. Earlier, a Business Standard Research Bureau study had reported that 125 entities disclosed substantial purchases of shares in 50 companies between January-March 2002 at an aggregated value of Rs 139 crore.

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Share acquisitions through market purchases were made for different purposes. The promoters did it to raise their shareholding in their own company.

Then, there are transfer of shares or strategic bought out deals with a strategic investor buying shares from promoters. Finally, individual investors also disclosed their investment buying in companies.

The largest acquisition of shares in terms of aggregate value (Rs 200 crore) was made by Reliance Power Ventures (RPV). The company, a subsidiary of Reliance Industries, acquired 91.70 lakh shares of BSES in three tranches, accounting for 6.66 per cent of the equity capital of the target company.

The company (RPV) acquired 30.78 lakh shares (2.23 per cent) during February-March 2002 through open market purchases. Further, between March 29, 2002 and September 17, RPV purchased 32.65 lakh shares (2.37 per cent) and between September 18-24, it purchased another 28.29 lakh shares (2.05 per cent).

After these acquisitions, RPV

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First Published: Oct 11 2002 | 12:00 AM IST

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