Leader in the spotlight: Saroj Kumar Poddar
Poddar of Adventz Group has emerged as a white knight in two hostile takeover battles
WHO: Saroj Kumar Poddar, chairman, Adventz Group.
WHY: Poddar, a gold medalist from Calcutta University, has emerged as a white knight in two hostile takeover battles. Poddar’s companies are critical in the battle for Mangalore Chemicals and Fertilizers Ltd (MCFL) and Kalindee Rail Nirman (Engineers) Ltd.
WHITE KNIGHT I: Poddar-promoted Zuari Fertilisers and Chemicals Ltd hiked its stake in Vijay Mallya’s MCFL to 16% from 10% last week after Deepak Fertilisers and Petrochemicals Corp. Ltd (DFPCL) acquired just under 25% in MCFL for ₹ 180 crore in July. Though Poddar is keen on taking over his friend Mallya’s MCFL, he is not making any attempt at a hostile takeover.
WHITE KNIGHT II: Last week, when engineering construction company Jupiter Metal Pvt. Ltd launched a voluntary and conditional open offer to buy a 30% stake in Gurgaon-based railway infrastructure company Kalindee Rail, Poddar emerged as a white knight. On the weekend, Kalindee Rail decided to issue 24.9% of equity through a preferential allotment of shares to rail wagon maker Texmaco Rail and Engineering Ltd, promoted by Poddar, to thwart Jupiter Metal’s plan to take over the company.
STRATEGY I: Poddar has described MCFL as a strategic fit for Adventz Group’s farm inputs business. However, he is not going to launch a hostile bid as Mallya is his friend and he is willing to wait till Mallya agrees to a change in management control.
STRATEGY II: Adventz Group was talking to promoters of Kalindee Rail through an audit firm as an acquisition will help Texmaco Rail diversify into railway contracts. Poddar is willing to buy shares at the right price.
CHALLENGES: For MCFL, Poddar will face a tough battle with DFPCL, the second largest shareholder in Mallya’s company. Similarly, Poddar has to launch a counter offer for Kalindee Rail.
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