Seven in fray for AP's stake in VST

Seven firms are in the fray to bid for the Andhra Pradesh government's stake in VST Industries, as the date for bidders to register themselves with the state public enterprise department ended on Wednesday.

These include ITC's subsidiary Russel Credit, stock broker R S Damani-controlled Bright Star Investments, Godfrey Philips' subsidiary Chase Investments, Life Insurance Corporation, IL&FS Investsmart, Kolkata-based stock broker Chandra Vadan Desai's CD Equsearch and Vadodara-based stock broker Shreyans V Mehta.

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"We have invited both the investment subsidiaries of BAT, which are holding VST shares, to bid for the government's stake in VST. We even sent information to BAT headquarters in London. We think BAT was not in a position to bid for want of FIPB nod," a senior official of the state public enterprises department said.

While BAT holds 32.16 per cent stake in VST as its principal promoter, Bright Star Investments and Russel Credit are controlling 19.56 cent and 10.50 per cent, respectively.

The public sector insurance companies' combined holding stands at 15.60 per cent.

All the seven registered parties have to submit their bids with a demand draft or a bank guarantee for 25 per cent of the offered price on or before August 29.