Mumbai, April 12 :
Mumbai, April 12:
The Jaipur-based Bank of Rajasthan Ltd (BoR) is in the eye of a storm again. This time, because the Tayals, who took over the ailing bank from the Keshav Bangur group and nursed it back to health, say they are being stalked by the Jaipurias who have ramped up their stake to 14 per cent.
The Jaipurias, bank sources say, held 0.5 per cent of the equity before a rights and warrants conversion pushed up the equity capital to Rs 107 crore. The Keshav Bangur group had renounced its share of the rights issue in favour of the Jaipurias, who now have acquired 14 per cent.
The Jaipurias, like the Bangurs earlier, were associated with the bank at one point of time. It is believed that C. Jaipuria was on its board in the early nineties.
The Tayal family, currently at the BoR helm, controls around 40 per cent of the bank's equity. While the group's stake in a bank is comfortable, there is some concern because the remaining equity is spread across 40,000 shareholders.
Bank sources say the regulators have been informed of the development. There is a possibility the Jaipurias and Bangurs are acting in concert, a situation that would trigger an open offer. Under the Substantial Acquisition of Shares and Takeover Regulation, 1997, a group must make an open offer for 20 per cent of equity once its stake rises above 15 per cent.
Estimates prepared by the bank's sources show that Keshav Bangur and Jaipuria group could, together, be holding around 20 per cent.
'We are still making an inventory of the BoR's shareholding,' they said.
On February 20, the bank was informed that Devyani Foods, a company based in Noida, near Delhi, was controlling close to 14 per cent.
While the promoters are reportedly comfortable with 40 per cent - the maximum they can own under Reserve Bank norms - they fear the Jaipurias and Bangurs have ganged up.
BoR, under the Tayals, has turned the corner and is likely to report a net profit in the last financial year and resume paying dividends after a gap of seven years.
Its paid-up equity has shot up from Rs 2.5 crore in 1993 to Rs 107 crore. The Tayals were asked to infuse funds into the bank, as the new promoters, by way of equity. Its net worth is currently Rs 300 crore and deposit holders' funds are pegged in the region of Rs 4,500 crore.