Close on the heels on bidding for the Andhra Pradesh government's stake in Sirpur Paper Mills Ltd, Kolkata-based broker Chandra Vadan Desai has submitted another bid for the state's 4.69 per cent stake in VST Ltd.
Desai said his stock broking outfit, CD Equisearch, submitted the bid on Saturday. The firm had early last week bid for the 6.35 per cent stake of the state in Sirpur Paper Mills.
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The competition for acquisition of Andhra Pradesh's stake in VST is becoming intense.
Industry sources say British tobacco major BAT, Indian tobacco giant ITC and the Damani-controlled Bright Star Investments have been eyeing the VST pie.
However, BAT would have to go through the Foreign Investment Promotion Board route for approval to buy the stake.
Desai said his attempt to acquire the state government's stakes in Sirpur and VST were 'strategic moves.'
Industry sources said Desai intended to invest in Sirpur as the Poddar-managed company has close links with the city.
However, he must be a front as far as VST was concerned, said the sources.
Desai refused to comment on this. "All that I can say is that I am a strategic investor in VST," he said.
He declined to reveal the price he bid for the stakes quoting confidentiality agreement with the Andhra Pradesh government.
