The Tatas have hiked their stake in Tata Investments Corporation Ltd (TIC).
Sources close to the deal said Aftaab Investment, a subsidiary of Tata Power Ltd, picked up the stake in an off-market deal on behalf of the Tatas from Dalal Street Investments Ltd, which has been in the limelight of late for its hostile bid on Forbes Gokak Ltd.
The Tatas acquired 7,60,000 shares, representing 4.61 per cent of TIC's paid-up capital of Rs 16.41 crore.
No intermediary was involved in the transaction; it was sewn up directly by Aftaab and Dalal Street.
Currently, Tata Sons and other promoter-companies of the group including Ewart Investments, Bambino Investments, Kalimati Investments and others collectively hold 57.85 per cent stake in TIC.
According to Tata source, Dalal Street had taken a loan of Rs 5 crore from Niskalp Investments in April 2000 and pledged certain shares of TIC as collateral.
The Tatas had acquired the shares from Dalal Street in two deals on September 28.
In the first deal, 5,24,700 shares which were lying with Niskalp as collateral was sold to Aftaab. In the second deal, 2,34,965 shares of TIC were sold.
The shares from Dalal Street were acquired at a price of Rs 68 when the market price was around Rs 60.
Ishaat Hussain, group finance director, Tata Sons, confirmed the development and added that shares were acquired through Niskalp Investments, an erstwhile subsidiary of Tata Finance.
"We would making a full disclosure of the deal in the TIC's rights offer letter to the shareholder," he said.
The deal is significant in the context of the recent counter-offer drama for Forbes Gokak. Pawankumar Sanwarmal of Dalal Street Investments has made the counter offer.
Man-made Fibres Pvt Ltd, Dalal Street Investments, Resham Resa Pvt Ltd and other Pawankumar group companies have made a counter offer at Rs 88.50 per share against the ongoing open by offer at Rs 80 per share.
As per the offer document, Pawankumar Sanwarmal holds over 14.8 per cent in Forbes Gokak.
