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Bajoria, Wadia battle it out through letters

Kausik Datta

The latest acquisition of shares of Bombay Dyeing & Manufacturing Company by Arun Kumar Bajoria has led to a war of letters between the jute baron and the Nusli Wadia-controlled textiles firm.

Bombay Dyeing has said Bajoria's claim of exceeding 5 per cent stake in the company as on July 31, did not hold good as data collected by the firm showed that the combined shareholding of two Bajoria-owned entities - Mega Resources and Mega Stocks - stood below 5 per cent on the day.

Mega Resources claimed that it purchased 86,475 shares of Bombay Dyeing on July 31, which raised the Bajoria group's holding to 5.1 per cent. Earlier, Mega Resources and Mega Stocks held 3.70 per cent and 1.23 per cent stake in the company respectively.

In a letter dated August 10, Bombay Dyeing has asked for clarification from Bajoria over the 'discrepancy' in data collected by the company.

In defence, Bajoria said he had informed Bombay Dyeing of his purchase on the day of acquisition, before the shares were transferred to the depository account of Mega Resources, the acquirer. Bajoria said the Bombay Dyeing letter reached Mega Resources office on Tuesday. It also sought for details of shares held by the Bajoria group in the company.

Mega Resources, he added, replied to the letter on Tuesday. "The language of the letter sent by Bombay Dyeing is very harsh. I have asked the company not to behave like detectives. Rather, I have suggested they should welcome me since I am one of the largest shareholders of the company," he added. Bombay Dyeing company secretary could not be contacted.

Share broking firms involved in the latest acquisition of Bajoria in Bombay Dyeing said Bajoria's Mega Resources purchased 86,745 shares at an average cost of Rs 36-37 on July 31.

Those shares were slated to be transferred to depository participant account of Mega Resources on July 7, which did not happen due to some problem with the transferring broker's DP account, and this created confusion.

Due to this delay, Bombay Dyeing did not find these shares in the name of Mega Resources till August 10, the day it sought for clarification from Bajoria.

On his acquisition of shares of Kanoria Chemicals, Bajoria said he had been holding nearly 14 per cent stake in the company for years. He has been active in both selling and purchasing at the counter.

Explaining the rationale behind it, he said the stock was a good buy at the ruling market rate. "I would like to buy more shares till the price touches the Rs 30-level. The company has been very well managed. I think it is a good long-term investment. But the problem is that there is very little floating stock at the counter."

The Kanoria family controls 60 per cent stake in the company. Bajoria's stake stands at 14 per cent, while LIC holds 16 per cent. Only 10 per cent stake is widely held. He said he was even eager to purchase shares from the financial institution at a maximum of Rs 30 a piece.

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