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Journalism of Courage
AHMEDABAD, May 1: Ahmedabad-based Arvind group, which has been unsuccessfully negotiating with a couple of financial institutions, including Japanese major Marubeni Finance Corporation and GE Capital, to hive off its stake in Anagram Finance Limited (AFL), seems to be in hurry to strike a deal with Industrial Credit and Investment Corporation of India (ICICI).
Less than a year ago, Marubeni and GE Capital were at one stage willing to offer up to Rs 70 and Rs 55 per Anagram share. The present ICICI offer is said to be around its current book value. While AFL shares are now quoted in the band of Rs 18 and 20, according to industry sources, the final deal may be struck between Rs 30 to 35 per share.
The sources said that it was as per the advice of its consultants, Arthur Andersen, that the Arvind group is keen to come out of non-textile units. The group had recently come out of the refrigeration business by selling off Amtrex.
The Arvind group had entered the non-banking finance companies sector about 15years ago by floating AFL, but it really took off after Satish D Nadkar took over as vice-chairman and managing director in February 93 and became one of the top 20 NBFCs around 1995. It made a bonus issue of 1:1 bonus issue in 1997. When AFL negotiations were on with Marubeni and GE Capital, insiders said, Nadkar who so assiduously nurtured his `baby’ and became synonymous with Ana- gram’s meteoric rise used to be visibly upset and was even reported to have put down his papers. With the onset of bad phase for most of the NBFCs, Anagram started losing its profits and business.
