In an eventuality of Indal's public shareholding coming down to 10 per cent or less, Hindalco has begun buying whatever Indal shares can be had through open market purchases since last week. Though its 25.5 per cent public offer at Rs 120 a share is scheduled to open on September 5 and will continue till October 4, Hindalco is not resting on its oars. The A. V. Birla Group flagship has already mopped up some 0.35 per cent to 0.37 per cent of Indal shares till date from the secondary market at just short of its offer price of Rs. 120. The company's immediate aim is to ensure that the critical gap of about 2.37 per cent between the combined promoters' and institutional holding and the targetted 90 per cent acquisition of Indal's paid-up does deter the ultimate objective of getting Indal delisted. Hindalco holds 5,30,66,724 equity shares of Indal, corresponding to 74.5 per cent of Indal's equity capital as per its public offer document. Renukeshwar Investment & Finance, Hindalco's 100 per cent subsidiary, holds another 7,900 shares or 0.01 per cent. The total promoters' holding is therefore 74.51 per cent as of now. Further as per the latest shareholding pattern with the BSE, UTI along with other mutual funds holds 34,60,444 equity shares or 4.86 per cent as on June 30,'02. Banks, domestic financial institutions and insurance companies together hold 58,93, 132 equity shares or 8.27 per cent. Flls hold 1.08 per cent of Indal equity. Minus the Flls, domestic institutional holding amounts to 13.12 per cent, while with the Fll holding, institutional investors hold an overall of 14.2 per cent. It is believed that if the entire institutional holding (domestic and foreign) gets offloaded in favour of Hindalco during the open offer, the promoters holding would climb up to 88.71 per cent, still short of the target 90 per cent by 1.29 per cent. If the domestic institutional holding goes Hindalco's way, promoters would get 87.63 per cent of Indal equity or 2.37 per cent short of the 90 per cent target.
NSTL
