Serial investor C Sivasankaran group firms have picked over 13% stake in Chennai-based realty company Arihant Foundations and Housing. The BSE-listed company is a small sized firm and shows how the diversified $3-billion Siva Group is not restricting itself to large companies for its treasury operations.
In its disclosure to the exchange, Arihant said the stake has been acquired by Siva Projects Engineering and Enterprises, Saravna Enterprises and S Jayalakshmi. Siva Group firms have been building the stake in Arihant since March 2009.
Arihant, in which the promoters hold 65%, had revenues of Rs 158.9 crore and net profit of Rs 2.8 crore for the 12-month period ended September 2009. Arihant scrip has rocketed over 30% over the last three weeks. At the last traded price the firm had a market cap of Rs 90 crore.
The Siva Group had early this year bought a similar stake in Indore-based edible oil and soya products company Ruchi Soya through open market purchases. Ruchi Soya is the largest branded marketer of palm oil in India and has been following a string of pearls strategy for building scale.