The Aditya Birla group investment companies, the promoters of Indian Rayon, are likely to increase their stake in the company by five per cent taking advantage of the recent concessions.
Sources said the group is likely to decide soon on the increase in stake but the timing will depend upon funds availability and app- roval from financial institutions.
Chairman Kumar Mangalam Birla had earlier formally announced that the group was planning to increase its stake in both Indian Rayon & Industries and Grasim Industries, the group's flagship.
The group's total stake in both companies is less than 20 per cent. Birla had said the group will take advantage of Sebi guidelines to increase the promoter holding.
"We are comfortable with our stake in Grasim. If anything happens it is likely to be in Indian Rayon," the sources added.
Sebi's decision on Saturday to allow promoters to increase their holding in group companies by five per cent every year has enthused promoters .
In the Aditya Birla group, the promoter stake in Grasim, Indian Rayon and Hindalco are less than 26 per cent, with Hindalco at 23 per cent.
Recently, the group had restructured its cement businesses by demerging the cement business of Indian Rayon with that of Grasim Industries. The demerger had created one of India's top three cement companies with a total capacity of 10.6 million tonnes after ACC and L&T.
The market price of Grasim had moved up after the announcement, but sentiment in Indian Rayon was still weak. Market sources said investors were uncertain about the future of the company after a major business has been hived off.
