Khaitan: Wait and watch

Calcutta, Oct. 26: Hindustan Udyog Ltd — a Calcutta-based steel company promoted by V. . Agarwal — has scooped up 12.57 per cent of WPIL Ltd (formerly Worthington Pumps India Ltd) through a cash offer made to the shareholders of the B. M. Khaitan-controlled company.

Hindustan Udyog had previously acquired 15 per cent of the company’s shares from the secondary market. Acquisition through the open offer increases Hindustan Udyog’s stake in WPIL to 27.57 per cent. The Agarwals had offered to acquire up to 20 per cent of the company’s shares at Rs 4.05 apiece.

Hindustan Udyog made the open offer after the Agarwals and Khaitans reached an agreement on running the company together. The Khaitans, however, had said they would not participate in the open offer. The Khaitans hold around 75 per cent of WPIL’s shares. The two families are related.

Deepak Khaitan, WPIL’s non-executive chairman, had said earlier the two families would join forces to turn the company around. He had also said the Agarwals would infuse funds into the company’s operations.

V. . Agarwal and his son Prakash Agarwal have already joined the board of WPIL — the latter as MD. In the year ended September 2002, the company had posted a loss of Rs 39 lakh on a turnover of Rs 31.23 crore.

In better times, WPIL had partnered companies like Johnston Pump, Hayward Tyler, Worthington and Ingersoll Dresser.