DCM Shriram raises preferential warrant price

In a new twist to the battle over DCM Shriram, the promoters have significantly increased the price at which they are issuing shares to themselves through preferential warrants from Rs 52 per warrant to Rs 90.

The promoters of the company are locked in a battle for control with Delhi brokerage HB Stockholding owned by Harish Bhasin.

The new price of the warrants became public today at the hearing before the Company Law Board (CLB), which reserved the judgment on the petition filed by Bhasin seeking a stay on the preferential warrants issue.

Sources close to DCM Shriram said the move was to protect minority shareholders. "Bhasin wants to increase his own share on the pretext of protecting the minority shareholders and we cannot let him do that," a source said.

Notably, the price is much higher than the Rs 70 offer made by Bhasin to acquire 22.8 per cent. Bhasin currently holds 12.77 per cent in the company.

DCM Shriram's share price on the Bombay Stock Exchange closed at a 52-week high of Rs 83.90, up 4.94 per cent over Wednesday's close of Rs 79.95.

Since Monday, when the HB Stockholding acquisition became public, the share price has moved up by 15.65 per cent.