Pune investor ups Videocon Appliances stake to 14%

Pune-based investor Ashok Parmar has scaled up his holding in Videocon Appliances to 14 per cent by purchasing two lakh shares from the market today.

Driven by frenzied buying by Parmar, the Videocon stock reached its 52-week high of Rs 36.65 on the Bombay Stock Exchange. The stock opened at Rs 31.50, fell to Rs 29 and finally closed at Rs 36.65, 19.97 per cent higher than yesterday's close. His cost of acquisition stands nearly Rs 65 lakh.

Confirming today's acquisition, Parmar says he may come out with a mandatory 20 per cent open offer to the shareholders of Videocon Appliances if his holding crosses over 15 per cent.

Venugopal Dhoot, chairman of the Rs 4,000 crore Videocon group is unfazed by the move by Parmar. The Dhoot family holds 37 per cent in Videocon Appliances, while another 14 per cent is held through friends and group companies.

Says Parmar, "With today's acquisition of two lakh shares, my stake in Videocon Appliances is close to 14 per cent. When it crosses 14 per cent mark, I shall be sending a letter to the company informing on the same."

Earlier, Parmar was seeking a birth on the board of Videocon Appliances, which was denied by the management. Parmar had acquired 11 per cent stake in Videocon Appliances a couple of months ago.