Platinum Asset picks up 5% stake in CESC

Platinum Asset Management Ltd, an Australian mutual fund, has acquired a 5 per cent stake in CESC Ltd, the R P Goenka controlled power utility, in the beginning of this month through open market operations.

The mutual fund, in which Soros Fund Management of the US has a minority interest, has picked up 36.08 lakh shares representing to 5.45 per cent stake on December 3.

Confirming the acquisition, CESC managing director Sumantra Banerjee said Platinum Asset Management has purchased shares from minority shareholders. He said the Goenkas, the promoters, were not the sellers.

The acquisition confirms the stock market perception that overseas buyers were keen on the scrip. This has pushed up the CESC stock and it recently touched Rs 147. It was trading at Rs 50 just three months ago.

Analysts said Platinum Asset Management perhaps was attracted by the dramatic turnaround of the power utility, thanks to debt restructuring. CESC was working to set up a new 250 mw power plant at an investment of Rs 1,000 crore. A final decision was expected by February.

Platinum Asset Management, an Australia-based global equity fund manager, is known for unique stock selection methodology to the objective of achieving above average returns for its clients.

The emphasis of the organization is on managing clients' money rather than gathering funds under management.

The firm was founded in February 1994 by a group of professionals who had established strong performance records with Bankers Trust Australia.

Platinum Asset Management currently manages in excess of Australian $9.2 billion with in excess of 20 per cent of this from investors in Europe, America, Asia and New Zealand.

Platinum had no exposure to the CESC stock during the quarter ended September 30, 2003. As on September 30, the promoters held 38.43 per cent, institutions held 18.46 per cent, private corporate body 15.79 per cent and public 23.10 per cent.

The balance was held by Bank of New York, non-resident Indians and foreign banks. CESC, the flagship of the RPG Enterprises, had long been ignored by investors. The mounting losses have dragged the stock almost to the par level.