Colour Chem clocks Rs 93-million net profit
By Pradeep Rane | 23 May 2002
Mumbai: Colour Chem Ltd has posted a net profit of Rs 92.90 million for the financial year ended 31 March 2002 as compared to Rs 86.80 million for the corresponding period last fiscal.
The total income (net of excise) has decreased from Rs 3,300.50 million in FY-01 to Rs 3,232.60 million in FY-02. The board of directors has recommended a dividend of Rs 5 per equity share.
The Securities and Exchange Board of India (Sebi) had recently issued a show-cause notice to the Swiss chemicals giant Clariant International for violating the Sebi takeover code for acquisition of Colour Chem shares. The code stipulates that any person acquiring over 15 per cent stake in a domestic company will have to make an offer to public shareholders of the company for a minimum 20-per cent stake.
The company failed to make an open offer for the Indian company, after buying the domestic unit's global parent. In 1997, Clariant acquired a 50.1-per cent stake in Colour Chem from Hoechst AG of Germany. But it did not make an open offer to shareholders of Colour Chem (India), which is mandatory under the Sebi takeover code.
Curiously, Sebi, in 1998, had rejected a proposal from Clariant International seeking an exemption from the open offer. Sebi had then said the proposed acquisition resulted in a change in control and management of Colour Chem India and therefore attracted regulation 10 of the takeover code.
A Clariant spokesperson had earlier clarified that the entire process of acquiring Colour Chem India's stake is exempt from the particular provision of the takeover code. This is because Clariant acquired the stake under a particular set of Swiss laws that grant the company automatic exemption from the open offer provision of the Sebi takeover code.
In October 2000, Hoechst AG, which was the parent of Colour Chem worldwide, transferred its holding in the Indian company to Ebito, a group company.