Mumbai: The chairman of the $40-billion Aditya Birla Group, Kumar Mangalam Birla, is predicted to purchase a significant share in Century Textiles and Industries, possessed by his grandfather, B K Birla, by subscribing up for a preferential allowance of stocks value about Rs 700 cr, eliminated by the company’s board on Monday.
This will help the Birla scion to consolidate his grip over Century Textiles. With the preferential provide, Birla will own an extra 6-7 % of the Rs 6,600-cr company. At present, the promoters own close to 40 % of the cement-to-real estate company & want to improve their share to over 51 %, insiders say.
The Century Textiles stake shut 7.3 % up at Rs 381 on Monday on reviews that Kumar Mangalam Birla will subscribe to the problem. On Monday, the company revealed a net loss of Rs 5 cr for it all quarter finished March against a net benefit of Rs 18 cr in the year-ago period & complete earnings of Rs 1,857 cr against Rs 1,614 cr. For the year ended March, it published a net profits of Rs 3 cr against a net loss of Rs 34 cr in the before year & complete earnings of Rs 6,694 cr against Rs 5,976 cr. The company’s board of directors has suggested a dividend of Rs 5.50 on a value share of Rs 10.
Kumar Mangalam, 46, is on the board of Century Textiles & in the lack of his grandfather is chairing board meetings & annual general meeting. Insiders say he is encouraging B K Birla, 93, to run the company for provided that he can.
Of the promoter’s share in Century Textiles, Pilani Investment, a holding company together possessed by B K Birla & Kumar Mangalam Birla, owns a 37 % share. Kumar Mangalam Birla & his grandfather bought over Pilani Investment from other Birla family members after a battle broke out over the late M P Birla’s estate in 2004. The Lodha family, which obtained M P Birla’s stocks as per to his widow Priyamvada’s will, own 25 % of Pilani Investment. The will is being contested by Birla family members in Kolkata courts.
After the controversial bequest, B K Birla completed his own sequence plan clear, providing all significant companies in his group to Kumar Mangalam. Kesoram Industries, an Rs 5,500-cr company, will be run by Kumar Mangalam as chairman & B K Birla’s daughter Manjushree, as vice-chairman. B K Birla’s other daughter, Jayshree Mohta, has been given Jayshree Tea & Industries.
With almost 12.8 million tonnes cement manufacturing capacity, Century Textiles is an ideal fit for the Aditya Birla Group, which is amid the top 10 cement manufacturers in the world, with a capacity of approximately 57 million tonnes. Century Textiles is also redeveloping its mill land in central Mumbai into a commercial complex & a hotel.
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