Bennett Coleman and Co- Ownership Structure

Blog Caution : This is a 2017 Post

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As per the consolidated financials for FY16 filed with the MCA website, the promoter holdings in BCCL are distributed between 8 private entities. These are: Bharat Nidhi Ltd (24.41%), Ashoka Viniyoga Ltd. (18.02%), Camac Commercial Co. Ltd. (13.30%), Sanmati Properties (9.75%), Arth Udyog (9.31%), PNB Finance & Industries (9.29%), Jacrandra Corporate Services (8.93%) and TM Investments Ltd. (5.96%). In all, these eight entities control 98.97% of the equity in BCCL. Members of the promoter family - Vineet Jain, Meera Jain and Samir Jain own less than 1 % each in their individual capacities.

"All large media groups in India operate through a web of holding companies and subsidiaries. BCCL’s web is just larger and more tangled than most"

But digging deeper into the eight promoter entities reveals that they in turn feature holdings in each other and as well as shareholders from the Jain family. For instance, Bharat Nidhi, the largest promoter entity in BCCL, has private companies and individuals owning a 96% stake, with its biggest shareholders being Vineet Jain, Sanmati Properties, Arth Udyog and TM Investments. Similarly, Ashoka Viniyoga’s top shareholders include Samir Jain, Camac Commercial Co. Ltd., and PNB Finance & Industries, among others. Further digging suggests that other promoter entities also feature family members or group entities as promoters.

Why do business houses go in for this onion-peel ownership structure? Well, using holding companies to route ownership stakes makes it easier for a group to reshuffle equity stakes in various businesses, exclude or add new promoters, structure compensation or receive equity infusion, one level removed from the main entity. This also brings with it less public scrutiny.  

Source / Credit /For More , please click :-

http://asu.thehoot.org/media-watch/media-business/the-bccl-empiretowering-over-the-competition-10255

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For more on Bennett Coleman and its Holding Structure , please click :-

 http://www.rareindianshares.info/2010/09/bennett-coleman-and-company-limited.html

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