Hyderabad, Mar 16: Raasi Cement Ltd (RCL) has denied that its group companies had picked up the holding of Sri Vishnu Cement (SVC), in a bid to distance the company from the takeover threat from the India Cements Ltd.In a communication to the Hyderabad Stock Exchange (HSE), RCL said the holding had been picked up by body corporates not related to the Raasi group. Hyderabad Stock Exchange had earlier sought a clarification from the company.
The shares of Vishnu Cements were picked up at par while they were quoting at Rs 6 per share on the markets, the company said. Morevoer, none of the body corporates had picked up more than 5 per cent of the shares of SVC, it said.
The decision to disinvest had come following the lacklusture performance of SVC which had not yielded any profits to the group and was unlikely to do so over the next four to five years.
The accumulated losses as on March 31 1997 were also not expected to be wiped off during the current year or the near future, it said. Hence, the RaasiCement Ltd board had decided to offload the holding, it said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
