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Thapars to split holding firm
Udit Prasanna Mukherji in Kolkata |
October 15, 2004 09:50 IST
Karam Chand Thapar & Brothers, the Kolkata-based holding company of several Thapar group outfits, will be spilt as part of a division of assets within the Thapar family.
When contacted, Vikram Thapar, vice-chairman of KCTB and managing director of KCT Coal Sales, said that a board meeting would be held on Friday to discuss the issue. Each family faction of the Thapar empire would now have a separate holding company, Thapar said.
KCTB was floated by the Late Karam Chand Thapar, the founder of the Thapar dynasty, to act as the holding outfit of all the Thapar group companies. KCTB is considered the counterpart of the 'Birla Brothers' in the Thapar group.
The Thapar group had launched a major restructuring in 2000-01. The group companies were divided between the four sons of K C Thapar — Inder Mohan Thapar, Brij Mohan Thapar, Lalit Mohan Thapar and Madan Mohan Thapar.
The main Thapar group outfits are JCT Ltd, JCT Electronics, Crompton Greaves Ltd, Greaves Cotton (formerly known as Greaves Ltd), Ballarpur Industries, Water Base Ltd, Bharat Starch Ltd, KCT Coal Sales and BILT Chemicals.
According to Thapar, the authorised capital of KCTB will be divided among the separate group outfits. Market sources said KCTB had convened an extraordinary general meeting (EGM) on November 10 to settle the matter. However, Thapar pointed out that the EGM was not that important as the group holding in KCTB was more than 95 per cent.
The sources said the Thapar group was also increasing the authorised capital by more than 400 per cent for the demerger. The authorised capital of KCTB was currently Rs 15 crore. The family proposed to increase it to Rs 65 crore.
"The company has also proposed to issue 50 lakh redeemable cumulative preference shares of Rs 100. This will aggregate around Rs 50 crore," added sources.
The IM Thapar group now controls KCT Coal, Waterbase, India City Property etc; the BM Thapar group runs BILT Chemicals, Crompton Greaves; LM Thapar runs Ballarpur, APR Ltd etc, and MM Thapar controls JCT Ltd, Greaves Cotton, etc.
Thapar family fortunes Each family faction of the Thapar empire will have a separate holding company. The authorised capital of Karam Chand Thapar & Brothers, the holding company, will be divided among the separate group outfits. The authorised capital of KCTB, currently Rs 15 crore, may be increased to Rs 65 crore. The company has also proposed to issue 50 lakh redeemable cumulative preference shares of Rs 100. This will aggregate around Rs 50 crore.