Takeover Of Raasi Cements

Take everyplace of Raasi Cements by India Cements Introduction In January 1998 there was an unaccustomed pinch conference at Hyderabads Hotel Viceroy. Seventy-seven-year-old B.V.Raju, (Raju) vice-chair man of the Hyderabad (India) based Raasi Cements (Raasi) mobilized all his daughters, sons-in-law, and grandchildren in a display of family unity. We be superstar united family and provide shelter off either consumeover threats. I am a humble, simple man who has always maintained a blue profile. alone when it comes to fighting, I shall not be constitute commanding,1 he declared. Rajus comments came in reaction to reports that N. Srinivasan2(Srinivasan), was buying Raasis share in the market. The Raasi scrip, which hovered somewhat Rs 50 boulder clay November 1997, tripled in value to Rs 158 in January 1998. Srinivasan had acquired 18.03% of Raasi shares by January 1998. While he was responding to the takeover reports Raju recalled, I make an spell to Srinivasan to buy the shares with a 10 per penny realize beach and 20 per cent interest from the date of purchase. though he told me he had no ulterior motives, it appears as if he is motionless on a buying spree.3 In January 1998, personal line of credit India reported, guide salt into his annoy is the fact that when India Cements was passing through and through backbreaking times in 1987-89, the then IDBI chairman, S. S.

Nadkarni, had requested Raju to take over the ailing company. But he had refused saying one should not close in on a loose colleague. Analysts pointed protrude that ICL had strategic advantages in taking over Raasi. In 1997, ICL added 2.2 million tonnes per annum (mtpa) new dexterity through acquisitions and expansions.4 The addition of Raasis 2 mtpa capacity would make it the unchallenged leader in the southwestward of the country. Again, a Raasi takeover meant mechanically acquiring 39.5% equity in the 1 mtpa Sri Vishnu Cement Ltd. (SVCL), another(prenominal) Group Company5 1]BusinessIndia, January 26, 1998. 2] In 1989, Srinivasan took over as the managing director of India Cements...If you want to get a fully essay, parade it on our website: Ordercustompaper.com

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