Scepticism over the Rs 4,800-crore acquisition of Reliance Cement shrouded Birla Corporation?s annual general meeting as shareholders raised questions about the feasibility of the deal as well as its financing.
For over an hour, Harsh Lodha, Chairman of Birla Corporation, had to listen to shareholders as they came on stage to express their concerns after which he justified the move.
"The deal has been struck at a time when the cement industry is not growing," a shareholder commented, asking the company?s chairman for a roadmap on how the deal would be financed.
Another shareholder referred to the company?s financials, which reflected a fall in the consolidated net profit by 10 per cent for the year ended March 31, and asked about the feasibility of the takeover.
Despite Lodha?s request, a third shareholder took a chance to call for a review of the deal.