KUALA LUMPUR: One of the brothers in the Kamdar family has disposed of his stake, paving the way for the emergence of a new shareholder in Kamdar Group (M) Bhd, which deals in textiles.
According to a filing with Bursa Malaysia yesterday, Rajnikant B M Kamdar and his wife Baby@Sudhakumari Amartlal have ceased to be substantial shareholders of the company after selling 15.26 million shares at 60 sen per share via a private arrangement to one Pui Boon Keng.
The shares amounted to 7.71% of Kamdar.
Pui emerged as a substantial shareholder with 23.12 million shares, representing a 11.68% stake in Kamdar.
According to industry executives, the disposal by Rajnikant does not come as a surprise as his sons who held executive positions in the company had resigned last year.
While Rajnikant has ceased to be a shareholder of the textile company, his brothers Bipinchandra Balvantrai and Hamendra BM Kamdar continue to remain on board.
Hamendra, the group’s deputy chairman, acquired a further 0.91% on Dec 19 last year to increase his direct stake in the company to 9.41%. He has an indirect interest of 0.94%.
Executive chairman Bipinchandra is the single largest shareholder in Kamdar with a 28.43% direct stake and another 0.48% indirect interest.
The second largest shareholder is managing director Kamal Kumar Kishorchandra Kamdar with a 13.4% stake.
For the nine months ended Sept 30, 2012 (9M12), Kamdar posted revenue of RM159.85 million, a slight increase from the RM159.40 million it recorded for 9M11. Profit before tax for 9M12 was RM17.97 million.
For the financial quarter ended Sept 30, 2012, the group recorded revenue of approximately RM62.46 million, an increase of RM7.77 million compared with the RM54.68 million the group posted in the preceding financial quarter ended June 30, 2012.
The group’s profit before tax for the current quarter was RM10.46 million, compared to RM5.24 million in the preceding quarter.
At close of trading yesterday, Kamdar’s shares had dropped 2.5 sen, or 4.7% to 51 sen, from last Friday’s close of 53.5 sen.
This article first appeared in The Edge Financial Daily, on Jan 30, 2013.