Lok Prakashan cuts Voltas stake by 6.5 per cent

The Ahmedabad-based Lok Prakashan group, publishers of the regional daily Gujarat Samachar, has pared its holding in Tata company Voltas to around 8 per cent from 14.5 per cent.

In September 2001, Lok Prakashan surprised corporate India by raising its portfolio in Voltas to over 14 per cent. The company's acquisition of the shares came close on the heels of the Kolkata-based jute baron Arun Bajoria picking up over a 14 per cent stake in the Nusli Wadia-controlled Bombay Dyeing, fuelling speculation that media baron Bahubali Shah would mount a hostile takeover bid for Voltas.

Shah had even told Business Standard then that as the group was sitting on a pile of cash, he was weighing an open offer once his stake crossed 15 per cent.

But now Shah appears to have made a considerable killing on the stock markets, following the sharp rise in the price of the Voltas stock.

Speaking to Business Standard, Shreyansh Shah, director of Lok Prakashan, said, "Our holding in Voltas has come down substantially and is currently at 8 per cent. The shares were sold in the open market taking advantage of the upward movement of the stock price. We will continue to sell our investments in the market."

"We have not put a time frame for our exit and/or scaling down of our holding in Voltas. It all depends on the price factor," Shah said.

Shah also added: "We had communicated to the management of Voltas that our interests in the company are purely an investment decision and that we do not wish to disturb the existing management."