The acquisition of 51 lakh shares at Rs 37.5 each by the BPB Group would result in BPB's holding going up from 40 per cent to 74 per cent. The acquisition has been done through BPB's wholly owned subsidiary, BPB Holdings India Private Ltd. The BPB Group also proposes to acquire the balance 6 per cent stake held by Hyderabad Industries in India Gypsum. Hyderabad Industries has already secured approval for the same at a recently held board meeting.

The transfer of shares in this case will not come under the takeover code and the foreign collaborator is not required to make an open offer.

With the acquisition of a controlling stake in India Gypsum, BPB is determined to maintain its position as a market leader through multilocational plants, said a company release.

India Gypsum is a joint venture between Hyderabad Industries and BPB Industries. About 40 per cent of the company's equity is held by the overseas promoter through its Indian subsidiary BPB Holdings India and another 40 per cent is held by the CK Birla Group. The balance 20 per cent rests with the public. Set up in February 1985, the company manufactures gypsum boards and other miscellaneous non-metallic mineral products.