IFB Agro faces predatory heat

The Bijon Nag group, which managed to thwart a takeover bid by the Mumbai-based Javeris for the flagship company IFB Industries, is facing a raid on another flank.

Shares of IFB Agro Industries Ltd, a group firm, are being bought by a south Indian firm, SICGIL Industrial Gases (formerly Hydrogas PLG India Ltd).

Sources in the IFB group confirmed that the Chennai-based Dadabhoy family-managed SICGIL Industrial Gases has acquired a shade over 5 per cent stake in IFB Agro.

"SICGIL has been active at the IFB Agro counter over the past couple of months. It has crossed the 5 per cent mark last week," they added.

The Nag group, which foiled the previous takeover threat at IFB Industries by receiving a favourable verdict from Company Law Board (CLB), has started reacting to the Dadabhoy move, they added.

Asansol Bottling & Packaging Co, a group firm, has purchased nearly one lakh shares of IFB Agro in December and first two weeks of January, taking the total promoters' holding to 52 per cent.

However, both the parties-the Dadabhoy and Nag family preferred to remain silent on the issue. Repeated attempts to reach IFB Agro director Bikramjit Nag and SICGIL Industrial Gases managing director F Dadabhoy failed.

Industry sources said IFB Agro, a flavoured liquors, extra neutral alcohol, technical alcohol, shedge fertiliser and cattlefeed maker, was a good investment at its current market price of Rs 7""8 a share.

However, they were not sure whether the take over attempt could be successful especially as the promoters were controlling the majority stake.

Last year, the Mumbai-based Javeris acquired over 10 per cent stake in IFB Industries. The acquisition followed a CLB verdict that partially froze voting rights of the Javeris. Later, the Javeris pulled out of the company.

Although neither Javeris nor Nags made any official comment, the shareholding pattern of IFB Industries made it clear that the former offloaded their shareholding in favour of the later.

Incorporated in 1982 as a private firm, IFB Agro became a public limited company and its name was changed to IFB Agro Industries Limited in 1986.

Initially it was engaged in manufacturing potable coloured and flavoured liquor. In early 1990s, it commenced marketing of its Indian Made Foreign Liquor (IMFL) brands. Later it diversified into the field of aquaculture and related projects.