Heavy police bandobast was in place at the venue following apprehensions of violence. Even before the meeting began, in fact, shareholders had heated arguments with securitymen; it began only after the private securitymen had left the auditorium. During the meeting, angry shareholders created a ruckus, often shouting down IPCL chairman K G Ramanathan, who, however, maintained his cool throughout.

Addressing the gathering, Ramanathan said that the government had decided to divest 25 per cent of the equity under the macro-economic restructuring programme. All necessary approvals had already been granted and a high power committee appointed to steer the process, he said, adding that internationally renowned merchant bankers Warburg Dillion Read had been appointed as the global advisor.

As per the time schedule, the process culminating with signing of share holder's agreement is expected to be completed by December 1999. The successful bidder will offer to purchase shares from other share holders as per the SEBI guidelines. The disinvestment decision had been taken by the Union Cabinet, and the chairman-cum-managing director had no say in it, Ramanathan said, blaming the dip in profits -- from Rs 244 crores in 1997-98 to Rs 29.36 crore in 1998-99 -- on a significant drop in prices of petrochemical products in the international market, higher depreciation and interest charges.

The company has decided to pay dividends at the rate of 10 per cent. The dividend pay-out will be Rs 25 crore.

However, the shareholders did not seem to agree with the company's view, and interrupted Ramanathan several times during his speech. Some even accused the management of indulging in wasteful expenditure. They even forced the two government nominees on the board to place on record their opposition to the appointment of a director.