VIP Industries, India’s largest travel-wear maker, is likely to sell its stake in the BSE-listed machine manufacturer Windsor Machines Ltd, to Renaissance Equipment Pvt Ltd, along with other promoters. VIP, one of the promoters, holds 17.49 per cent stake in Windsor Machines.
The promoters are expecting a final decision from the Board for Industrial and Financial Reconstruction (BIFR) soon.
According to BSE data, other promoters — DGP Windsor Ltd and Vibhuti Investments —hold 22.63 per cent and 2.31 per cent, respectively with an aggregate stake-holding of 42.43 per cent in Windsor Machines. The public shareholding stands at 57.57 per cent.
Windsor Machines is a manufacturer of plastic processing machinery with revenue of `206 crore. DGP Windsor is another company owned by Dilip G Piramal, chairman of VIP Industries.
According to sources in the know, the deal could be valued around `125 crore. P C Kundalia, the promoter of Renaissance Equipment, will buy the stake from Windsor Machines’ promoters. Kundalia is currently the director of Windsor Machines and runs the company on behalf of the promoters. Windsor Machines was declared, a sick industrial company on June 29, 2006, by the BIFR. ICICI Bank was appointed its operating agency and asked to prepare a scheme of rehabilitation.
According to experts, an open offer will not be necessary in cases where BIFR is involved.When contacted, management of VIP declined to comment. An email sent to Kundalia did not elicit any response. On Wednesday, shares of Windsor Machines were closed at `80, up by 3.56 per cent, while VIP shares went up by 4.71 per cent to close at `695.2 on the BSE.
Windsor Machines has three manufacturing facilities at Thane in Mumbai, and Chhatral and Vatva in Gujarat. But, the operations of the Thane unit of the company remains closed. Subsequent to the disinvestment of equity by Klockner-Werke, Germany to Dilip G Piramal in 1994, the company was named DGP Windsor India Ltd.