Rajashree Birla, one of the promoters of the Aditya Birla group has joined the Century Textiles board as a Promoter Director, after Aditya Birla group companies decided to increase their stake in Century Textiles to 50 per cent from 45 per cent after conversion of a preferential offer of shares issued to the promoters in July 2014. The step could be a sign of future announcement regarding the B K Birla group companies, Century Textiles and Kesoram Industries, consolidating operations with Aditya Birla group companies.

The board position fell vacant after Sarala Birla, wife of B K Birla, died last month. Kumar Mangalam Birla, Chairman of the Aditya Birla group, Rajashree Birla's son and B K Birla’s grandson, chairs board meetings at Century Textiles. The Century Textiles stock has shot up 35 per cent since January on merger reports. Century Textiles also announced a net profit of Rs 11 crores in the March 2014 quarter against a loss of Rs 4.9 crore in the same period last year. For 2014-15, the company reported Rs 7,559 crores of revenue and Rs 15 crores profit.

Birla companies Pilani Investments and Kesoram Industries own 36.78 per cent and 2.95 per cent in Century respectively. The total promoter ownership will rise to 50.21 per cent from 40.23 per cent after the conversion. Sources say that the price of conversion will be fixed according to the Securities and Exchange Board of India (Sebi) formula of the 26-week average trading price or two-week average price. At the current six-month average price, Kumar Mangalam Birla will have to pay Rs 600 crores to convert these warrants into equity.

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