Dhoot: Bright picture

Mumbai, Aug. 22: The share price of Videocon Industries Ltd has risen on the back of a couple of mergers that will help the company enter the consumer durables business in Europe.

The re-rating of the stock has tempted the Dhoot family (the promoters of Videocon Industries) to offload about 16 lakh shares during the bull run. According to conservative estimates, the stake sale will rake in over Rs 60 crore.

Videocon Industries shares today closed at Rs 430, after opening at Rs 411. On August 13, the company held a board meeting to approve the amalgamation of Electrolux Kelvinator Ltd with itself.

?I will check with my company secretary. Only then can I respond,? said group chairman Venugopal Dhoot when The Telegraph contacted him to confirm the tranche of shares sold.

Videocon Industries shares have hit annual peaks at Rs 484 and a low at Rs 44. That represents a 1000 per cent claw-back.

On July 22, the promoters, through a web of holding companies, sold about 5 lakh shares of Videocon Industries, accounting for 1 per cent of the company?s equity capital. The deal was routed through Electroparts (India) Pvt Ltd, earlier called Venugopal Engg Pvt Ltd.

Another investment company ? Shree Dhoot Trading & Agencies Ltd ? sold 3,37,000 shares, or 0.68 per cent of the equity. Roshi Finance, another investment company, offloaded 244,069 lakh shares. The three deals took place on the same day.

The spate of share sales by holding companies coincided or came about around the same time when the flagship of the Videocon group was announcing a series of mergers and amalgamations with foreign firms. The overseas companies have a significant presence in the consumer durables sector in developed countries, particularly in Europe.

Almost a fortnight later, Videocon Industries again saw some selling by an investment company ? Macotax Consultants Pvt Ltd ? which parted with 34,064 shares. That day itself, Waluj Components Pvt Ltd sold 247400 shares, amounting to 0.5 per cent of the share capital of Videocon Industries. Roshi Finance sold another 42246 shares and Gandak Investments Pvt Ltd 57,079 shares.

Neetu Financial Services, too, offloaded 0.23 per cent of the equity on the same day. Rajkumar Dhoot sold shares amounting to 0.06 per cent.