Friday, February 16, 2007

BPL promoters sell 6.3% stake in company in open-market transaction

The promoters of BPL, the Nambiars, have sold a 6.3% stake in the company for about Rs 25-30 crores. The stake was sold in the open market. In June 2006, the Nambiars had significantly raised their stake in BPL through a preferential allotment; they have now sold their stake at more than double the price of the preferential allotment. The allotment was made at a price of Rs 43 per share. The promoters’ stake in BPL has now come down to 65.26% from 72.6% stake as of December 2006.

The preferential allotment made to the Nambiars in June 2006 was in lieu of conversion of a loan advanced by the promoters to comply with the corporate debt restructuring plan. BPL is currently undergoing a debt restructuring programme; BPL has been going through financial pressure including cash flow problems.

For the quarter ending December 31, 2006, BPL had reported net sales of Rs. 24.97 crores on a net loss of Rs. 8.78 crores.

Read The Economic Times article.

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