Kolkata brokerage picks up 5% in Balmer Lawrie unit

Kolkata-based brokerage firm CD Equisearch (CDE) has picked up a five per cent stake in public sector company Balmer Lawrie Investment Ltd (BLIL). The firm has already informed BLIL about its acquisition.

BLIL is up for disinvestment. CDE crossed the five per cent limit at the end of last week. The company, owned by Chandra Vadan Desai, recently acquired five per cent stake in GIC Housing. It has stake in other firms too, like Maharashtra Scooters, West Coast Paper, Sirpur Papers and IPCA Labs.

When contacted, Desai confirmed the development. "CD Equisearch's holding has crossed five per cent. It is purely an investment decision," Desai said.

BLIL is a shell company created to hold government's 59.67 per cent stake of Balmer Lawrie and Company (BLC) when it was separated to facilitate sale of IBP. The government had decided to sell BLIL's stake in BLC.

CDE believes with BLC's current market price of around Rs 160, BLIL shareholders would get no less than Rs 75-80 per share. At present, BLIL's share is hovering around Rs 47-48 mark.