Merrill buys 5% in Satnam Overseas
TIMES NEWS NETWORK[ WEDNESDAY, DECEMBER 17, 2003 12:13:25 AM ]

NEW DELHI : Merrill Lynch has acquired 10 lakh shares, or 5.1% stake, in Satnam Overseas, a Delhi-based exporter of basmati rice. All the shares were purchased from the open market, a senior official of the company said. Both the basmati exporter and Merrill have informed Sebi about the deal, the official said.

The entire bunch of 10 lakh shares were purchased by Merrill on December 10, when the scrip was available at around Rs 79, almost unchanged from the previous day’s price. Subsequently, the share price moved up to Rs 84.

The promoters of Satnam Overseas, the Arora family, hold 69% stake in the export firm which has diversified into processed foods. The company has a paid up capital of Rs 19.6 crore. Satnam markets ‘heat & eat’ processed foods, like ‘palak paneer’, under the Kohinoor brand, apart from premium basmati rice.

In a statement, Satnam Overseas said that its share in the branded basmati market in India was 32%. The company had recently launched ‘namkeens’ under the Kohinoor brand.