Kumar Mangalam Birla’s stake in Century Textiles and Industries could rise by almost five per cent in the next few weeks as he plans to convert warrants into equity before the deadline of December 18 when the instruments lapse. Century Textiles, founded by his grandfather Basant Kumar Birla, had issued 1.86 crore warrants to private companies owned by the Aditya Birla Group chairman last year.

Of this, 84.7 lakh warrants were converted into equity shares in March this year, taking the promoter stake in the company to over 45 per cent from 40 per cent in December 2014. Kumar Mangalam Birla now intends to convert the rest of the warrants into equity. After this, promoter group stake in Century will rise to 50.21 per cent from 45.22 per cent currently.

The promoter of Century Textiles had refrained from converting their entire warrants to equity in one go as it would have triggered an open offer. Sebi rules allow for creeping acquisition or buying shares from the secondary market only up to five per cent in a fiscal. The warrants were issued at Rs 355 each in 2014.

Century Textiles is known for cotton textiles and has a presence in yarn, caustic soda, salt, cement, pulp, paper, denim.

www.centurytextind.com/