On Monday, he sold off most of Kesoram's cross holdings in other B K Birla Group companies and also disposed stakes in own group outfits like Aditya Birla Fashion at one go, netting close to Rs 300 crore.
Kumar Mangalam Birla appears to be serious about B K Birla Group flagship Kesoram Industries, the latest addition to his empire.
On Monday, he sold off most of Kesoram's cross holdings in other B K Birla Group companies and also disposed stakes in own group outfits like Aditya Birla Fashion at one go, netting close to Rs 300 crore.
These deals are believed to be part of Kesoram's ongoing restructuring exercise which would help B K Birla's grandson Kumar Mangalam to manage Kesoram efficiently, removing it from inefficient business units and group cross-holdings.
To trim its diversified business operations, Kesoram Industries on Saturday hived off its rayon and transparent paper business to a wholly-owned subsidiary for Rs 480 crore. In September, it had sold truck and bus radial tyre plant at Haridwar to JK Tyre.
Monday's transactions, carried out in the open market, reduced to zero Kesoram's holdings in several B K Birla Group companies like Century Enka, Century Textile, Mangalam Timber Products, Mangalam Cement and also in K M Birla's own group outfit Aditya Birla Fashion.
While the biggest deal in monetary terms is the sale of 2.46% in Century Textile for Rs 142.86 core, the most important transactions have been those involving companies like Mangalam Cement and Mangalam Timber.
These companies are being managed by Manjushree Khaitan's daughter Vidula Khaitan as per her grandfather's Will.
Kumar Mangalam has now sold off Kesoram's entire 14.31% in Mangalam Cement for about Rs 81.35 crore and 13.8% in the much smaller Mangalam Timber Products for Rs 4.55 crore.
Following the disclosures made during trading hours of Monday, shares of Mangalam Cement tanked 6.75% at BSE to close at Rs 212.70 while Mangalam Timber Products dropped 2.74% to Rs 17.80.
Kesoram also sold 6.4% in Century Enka for about Rs 22.96 crore, and the deal pulled down the script by about 4% to Rs 171.80.
Kesoram ended the day with a gain of 1.84% at Rs 105.15 post pairing some gains in a bearish market.
A back-of-the-envelope calculation shows a realisation of about Rs 295.21 crore for Kesoram from these open-market sales based on Monday's closing prices.
Additionally, Candem Industries, to which Kesoram had earlier transferred its spun pipe and heavy chemicals divisions, has picked up 3.44% in Aditya Birla Fashion.
K M Birla now effectively controls Kesoram. In February, the company made referential allotment to a K M Birla-owned investment company Manav Investments which raised its stake in the company from 7.87% to 12.93%. K M Birla-controlled group investment company Pilani Investments had earlier hiked its stake in Kesoram to 24.91% from 5.28%.
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