The office of the custodian has mopped close to Rs 750 crore (Rs 7.5 billion) through the sale of deceased Harshad Mehta's holding in a number of bluechip companies in the current calendar year.
In the next round of auction, the custodian is expected to sell Harshad's holding in ACC. It is also expected to put Harshad's real estate properties for sale. However, no date has been fixed yet, an officer close to custodian office said.
Interestingly, Life Insurance Corporation of India has been aggressive in picking up the equity portfolio belonging to the deceased Harshad Mehta, which was attached following the 1992 Securities scam.
Of the estimated Rs 800-odd crore (Rs 8-billion) worth of securities sold, LIC has picked up securities worth over Rs 350 crore (Rs 3.5 billion).
It has been picking erstwhile Big Bull's attached portfolio in line with its plans to increase its exposure to the equity segment.
Of the LIC's total incremental investible funds, over nine per cent have been invested in the equity market.
In a falling interest rate scenario, LIC is becoming an aggressive player both in the equity and money markets.
During the last auction on August 22, LIC acquired 700,000 shares of Telco at Rs 155 per share, 23 lakh (2.3 million) Reliance shares at Rs 275.
The auction, which witnessed hectic bidding, saw LIC being forced to modify its price upwards before the block of 14.6 lakh (1.46 million) Reliance shares were sold to LIC at Rs 365 per share.
This was despite the court having received higher bids at Rs 375 per share. In the case of ITC and Apollo Tyres, however, the shares were allotted to other parties some of which had not even put in a bid for the same on the last date of tender.
As per the terms of the offer, the custodian has to sell the entire stock of shareholding, based on the bids received during the tender period.
In this case, however, the judge chose to ask interested parties to revise the highest offer price, and also allowed parties, which had not put in any bids during the tender period.
In January this year, LIC had picked up shares worth more Rs 200 crore (Rs 2 billion) from Harshad's portfolio including Hero Honda (60 lakh shares, reflecting 7.5 per cent of the company's paid-up capital), ITC (470,000), Hindustan Lever (630,000), Castrol (11.18 lakh), Tata Tea (730,000) and Gujarat Ambuja (23.26 lakh).
