MUMBAI, Aug 12: MCS Ltd, one of the leading registrars in the country, has bought out the registrar and share transfer division of Birla Consultancy & Software Services(BCSS), a unit of Grasim Industries. MCS has written to the Securities and Exchange Board of India and the Bombay Stock Exchange, informing them about the purchase. With this buyout, MCS will come head-to-head with Karvy Consultants, the biggest registrar in the country.

The deal was signed and cleared on August 11. In its letter to the regulatory body, MCS has also provided information about the purchase of the assets, liabilities, business and manpower of BCSS. MCS will be retaining all the 65 employees of BCSS.

MCS will also takeover the registrar and transfer (R&T) work of the seven companies that are currently handled by BCSS after signing agreements with them. This will bring 20 lakh folios into its fold with Mangalore Refineries Petrochemicals Ltd (MRPL) being the account.

BCSS handles four Birla group companies, namely, MRPL, Rajashree Polyfils Ltd, Precision Fastners Ltd and Birla Growth Fund along with other private companies such as Themis Chemical Ltd, Aroni Chemicals Ltd and Sushant Capital Market.

According to Arun Agarwal, chairman MCS they have bought out BCS to consolidate their position in the industry. This is one of the first moves made by MCS to buy out the small registrars, they expect a few more by the end of this year.

Their main contention being that the smaller registrars have good business but they cannot survive in the current competitive environment. Hence, a better option is to sell out to the bigger ones.

MCS, a public limited company, is listed on the BSE and the NSE. MCS already handles some major Birla companies like Grasim, Hindalco, Indo Gulf Fertilisers and Bihar Caustic. MCS' portfolio comprises 74 companies of which 31 are from Mumbai and 43 from Delhi with a total of 150 lakh folios which include units of General Insurance and Unit Trust of India.

The size of a registrar can be judged on the basis of the number of register folios, that is the number of shareholders that are serviced by them. Karvy is currently the largest in the industry servicing around 180 lakh folios.

The top ranking came about only after the Reliance account was shifted to them. Karvy has a total of around 133 companies with 10 companies on the Over The Counter Exchange of India and 20 mutual funds.

MCS has well developed infrastructure facilities and has linked up with the National Securities Depository Ltd, providing services for shares in the demat segment. MCS is already handling Grasim, Hindalco and Century Textiles in the dematerialised segment.

Birla Consultancy & Software Services is a closely-held company of the Birla group with the registrar section operating as an in-house division of the company. It has till date not linked itself to the depository.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.