K. T. Jagannathan
Announce decision to cede management control in SSI
SSI promoters sell 51 p.c. stake to PVP EnterprisesSale consideration to be partly invested in debt instruments
CHENNAI: The Kalpathis are keen to become VCs (venture capitalists) now that they have announced their decision to cede management control in SSI Ltd., a company founded by them, to Hyderabad-based PVP Enterprises Private Ltd.
The Kalpathis have already identified a couple of emerging industries to provide VC funding. They should be able to kick-start their first VC funding a few months hence by which time the entire formalities for the takeover of SSI by the new owners would have been completed.
Kalpathi Suresh, Chairman of SSI, told this correspondent that though the promoters had sold in all 51 per cent of their holdings to the Hyderabad entity in two tranches, they had still retained 20 per cent equity holdings in the company. He indicated that the Kalpathis would eventually sell their remaining holdings too in SSI at an appropriate time and price.
Kalpathi S. Aghoram is currently the managing director of the company while Kalpathi S. Ganesh is a director on the board.
Mr. Suresh said the sale of 51 per cent would fetch the Kalpathis around Rs. 625 crore. While declining to specify the two areas for VC funding, he said the sale consideration would partly be invested in debt instruments and banks.
A part of it could be placed with portfolio management companies to fetch better return, he pointed out.
Mr. Suresh said the sale of SSI would also mean the transfer of some properties such as the Binny land at Ambatur, the building at Vadapalani (which is on lease to TCS), the 6-floor space on the Harington Road and the property on East Coast Road to the new owners.