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Bajoria's temporary 'no' for open public offer in Bombay Dyeing

Arun Bajoria, who acquired 14-15 per cent share recently in Nusli Wadia-controlled Bombay Dyeing and Industries Ltd on Thursday said that he would not make an open public offering to increase his stake in the company, at least for the time being.

Bajoria said, "I have already purchased about 14 per cent of the total equity of Bombay Dyeing from the market and for further increasing the stake, I will have to make an open offer for which I am not prepared at present."

"What is the point in going for an open offer, if I cannot muster management control?" he asked.

He, however, said, "I will go in for public offering only if Wadia, chairman of the company is willing to sell his own shares to me so that I can have control on the board as well."

"Bombay Dyeing is a great company with an asset base of about Rs 26 billion and an equity of only Rs 400 million. It has some very good brands under its kitty," he added.

Meanwhile, for the Rs 60-billion jute industry, concentrated mainly in West Bengal, Arun Bajoria's inroads into Bombay Dyeing Industries Ltd have come as a pleasant surprise.

Bajoria, a jute baron, however, himself does not feel that he has done much. "It is not a great thing. There is nothing to be proud about. I have just made some investment which at present stands neither here nor there, any investor can do it."

Bajoria a leading Calcutta-based financier, had purchased the 14-15 per cent equity shares of Bombay Dyeing and Industries Ltd through two Calcutta-based and two Bombay-based broking firms with most of the dealings being made at National Stock Exchange and the Bombay Stock Exchange.

The jute baron avoided a direct answer when asked what he would do if not making bids to acquire another 20 per cent through open offer.

To a query he said, "I cannot say whether it will be a good investment or a bad one. You don't know how the share market is going to behave. If the market is up then I will say it was a good investment, otherwise it will prove to be bad. As of now it appears to be a so-so investment."

Bombay Dyeing had filed a complaint against Bajoria with the Company Law Board and SEBI for 'illegally' acquiring 14 per cent stake.

Meanwhile, information from the share market suggested that Bajoria might not attempt to takeover Nusli Wadia's company.

" His (Bajoria's) purchasing 14 per cent equity shares of Bombay Dyeing was solely for investment gains," market sources claimed.

Bajoria had made similar investment in a Calcutta-based closely held company recently when he bought close to 700,000 of its shares, when its market price was ruling low in the range of Rs 70 to Rs 80. After the management got wind of the development it negotiated a deal to buy back shares from Bajoria at Rs 350-Rs 360, they said.

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