Search the Internet          Tips  Sites: Finance, Investment

Kerry Packer stake in HFCL down to 2.5%

Ishita Ayan Dutt & Sambit Saha

Australian media tycoon Kerry Packer is set to exit Himachal Futuristic Communications Ltd. Packer's holding in the company as foreign promoter stands at 2.54 per cent.

C K Ghoshal, finance advisor at HFCL, said the reduction in stake was part of Packer's plan to exit from all ventures in India. When asked specifically about HFCL, Ghoshal said it indicated Packer was exiting from HFCL as well.

He, however, could not give a definite time-frame within which Packer would exit totally from the company. At this point of time, the promoters did not have plans to woo a strategic investor to put money into HFCL to replace Packer, he said.

Ghoshal said, "Packer has already moved out of the other two ventures with HFCL--HFCL Nine Broadcasting, a television software producer and Excel Net Commerce, e-solutions provider. He is exiting from India".

Packer had picked up 10 per cent in HFCL in early-2000 through Consolidated Press Holdings for Rs 10.39 billion. The shares were acquired at Rs 1,450 each. The value of 10 per cent in HFCL at today's market rate is a shade over Rs 490 million as the price today was around Rs 68.

Packer's holding in HFCL, which stood at 9.09 per cent at the end of March, has been steadily decreasing since then. It stood at 6.06 per cent at the end of September quarter and then to 3.52 per cent as on December 31.

Over the last one year, the Indian promoters' holding has dipped marginally to 17.68 per cent, institutional investors dramatically by 31.53 per cent to 12.04 per cent.

However, what is interesting is that, while institutions and even foreign promoters have been reducing their exposure in the company, Indian public lapped up HFCL shares. Public holding during the same period increased from 6.26 per cent in March 2001 to 43.77 per cent in March 2002.

The day the HFCL-Kerry Packer tie-up was announced, HFCL scrip had flared up on the news. On the Bombay Stock Exchange, it had touched a new all-time high of Rs 2,420.40 before closing at Rs 2,415, up Rs 173.85 over the previous close.

It was the most actively traded scrip on the BSE, with a turnover of Rs 10.06 billion out of the total volume of Rs 51.45 billon. The scrip closed at Rs 68.95 on BSE and Rs 69.10 on NSE on Thursday. Volumes, however, were still significant at 18,99,322 and 47,03,294 on BSE and NSE, respectively.

Powered by

ALSO READ:
The Rediff Budget Special
The Rediff-Business Standard Special
Money

Tell us what you think of this report