Mumbai: B.K. Birla Group-controlled Century Textiles and Industries Ltd has allotted 10.18 million shares to two companies controlled by Aditya Birla Group chairman Kumar Mangalam Birla. After conversion into equity shares, the allocation will raise the promoter group’s holding from 45.22% to 50.21%.

Century Textiles allotted 4.10 million shares to Aditya Marketing & Manufacturing Ltd and 6.08 million shares to IGH Holdings Pvt Ltd upon conversion of warrants, the company said in its filing to the BSE on Friday. Both these companies are clubbed under promoter group companies.

In May last year, Century Textiles had issued 18.65 million warrants without disclosing names of the companies.

B.K. Birla, chairman of the group, has said in several interviews that he wanted his grandson Kumar Mangalam Birla to take over his flagship Century Textiles, which has interests in cement, rayon and paper. However, there has been no formal transfer of power.

Century Textiles had in October appointed Kumar Mangalam Birla as vice-chairman.

It was a clear sign that in line with his grandfather’s wish, Kumar Mangalam Birla will lead the firm, Mint had reported on 31 October, citing unnamed people.

B.K. Birla is unwell and has distanced himself from the running of his firms.

Kumar Mangalam Birla has been consolidating his control over Century Textiles in the past few years, the people cited above said, requesting anonymity. The huge real estate holdings of Century Textiles in central Mumbai makes it the most valuable firm in the B.K. Birla group.

According to an 8 September filing to the BSE, Kumar Mangalam Birla chaired the 118th annual general meeting held on 28 July. According to the filing to BSE, B.K. Birla suggested to the directors that Kumar Mangalam Birla be asked to chair the meeting in his place.

The huge real estate holdings of Century Textiles in central Mumbai makes it the most valuable firm in the BK Birla group.

On Friday, shares of Century Textile ended at Rs572.55 on the BSE, down 1%, while the benchmark Sensex fell 1.1% to close at 25,519.22 points.

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