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    Fund managers meet TD Power management over promoters' dispute

    Synopsis

    Sources said fund managers who attended the meeting raised concerns with the company management over the lack of disclosures about the dispute between the promoters prior to the stake sale.

    Fund Managers Meet TD Power Management Over Promoters’ DisputeAgencies
    Shares of TD Power rallied 86% in the last six months and currently command a market capitalization of ₹4,080 crore.
    Mumbai: A clutch of institutional investors, including HDFC Asset Management Company and Aditya Birla Sunlife AMC, met with the management of Bangalore-based engineering services company TD Power Systems (TDPS) last week to discuss a dispute between the company's promoters.

    The spat within the promoter group had led to a faction selling TD shares in the open market that were acquired by some institutional investors.

    Sources said fund managers who attended the meeting raised concerns with the company management over the lack of disclosures about the dispute between the promoters prior to the stake sale.

    A few fund managers last week met the company management that was arranged by Motilal Oswal Financial Services, which was instrumental in arranging the deals, said sources.

    Email queries to TD Power, HDFC AMC, Aditya Birla Sunlife AMC and Motilal Oswal Financial went unanswered till press time.

    On June 30, TD Power promoters, including Mohib Khericha, Nikhil Kumar, Chartered Capital, Saphire Finman Services LLP, and Hitoshi Matsuo sold around 3.78 crore shares, representing 24.21% of TD Power's equity capital in an open market sale.

    These shares were acquired by institutional investors including Aditya Birla Sun Life AMC, BNP Paribas, HDFC AMC, ICICI Prudential MF, Goldman Sachs LIC MF, Mahindra MF, Mirae MF, Oxbow Master Fund, Quant MF, Societe Generale among others. It could not be ascertained if all the fund managers who bought the TD shares met the management last week.

    The sale resulted in the shareholding of promoters going down from 58.45% to 34.30%.

    Mutual fund industry sources said fund managers who bought these shares in the block deals were unaware of the ongoing dispute between the promoters. These funds are uncomfortable with being tangled in the legal dispute.

    In July, the Karnataka High Court had restrained Mohib Khericha and several others from transferring 2.51 crore shares of TD Power held by promoter entity Saphire Finman Services. The court passed the interim order on a petition by Vijay Kirloskar, who founded TD Power in 1999. According to news reports, Kriloskar had transferred his ownership of the shares to Khericha for holding them on his behalf. In the petition, it was alleged Khericha had failed to comply with an agreement to return the shares to Kirloskar.

    Kirloskar and Kirloskar Electric Welfare Trusts had moved the High Court to stop Khericha and others who hold 2.51 crore shares in the company through Saphire Finman Services from transferring or selling them in the stock market.

    Kirloskar shot off a complaint to Sebi and stock exchanges accusing TD Power of "deliberately and dishonestly" avoiding compliance with the disclosure obligations under newly-carved Sebi listing regulations.

    The complaint was made in response to the stock exchange disclosure made by TD Power on August 12, in which the company said Mohib Khericha is currently not a shareholder of the company,

    Shares of TD Power rallied 86% in the last six months and currently command a market capitalization of ₹4,080 crore.




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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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