The Hindu Business Line : Satnam Overseas promoters shed 6 per cent stake

PROMOTERS of Satnam Overseas Ltd , a basmati rice-exporting firm, have sold more than six per cent of their stake in the stock market this month. Leading FIIs have purchased most of these shares.

Following the sale of 6.1 per cent stake (12.09 lakh shares) this month, the promoters' stake in the company has come down from 55.93 per cent at the end of December 2004 to 49.83 per cent.

The promoters (the Aurora family) had sold a portion of their holding in the open market during the last quarter (October-December).

Since the beginning of October 2004, the promoters have sold almost 20 per cent of their equity. At the end of September 2004, they held 69.86 per cent stake.

Some of the FIIs, which have bought the shares of Satnam Overseas this month, include Citigroup Global Market, Mauritius (6.16 lakh shares), Arnada Investment Mauritius (2 lakh shares) and TAIB Bank (3.95 lakh shares).

After these purchases, the FIIs' holding in the company has also gone up to 23.83 per cent. Among the leading FIIs having large stakes in Satnam include Temasek Holding group company Arnada Investment (8.1 per cent), Merrill Lynch Capital Market Espana (5.1 per cent) and Citigroup Global Market (3.1 per cent).

The buying interest by FIIs is also seen from the rise in the stock price of the company in the last one month. It has increased from Rs 83 to today's closing price of Rs 117.95, a gain of 42 per cent on the BSE.

Brokers and analysts said the interest of FIIs in the stock is due to the company moving from bulk export of rice to branded rice. "Since the revenues from branded rice and other branded products is growing, FIIs are looking the stock as an FMCG company," said an analyst with a foreign broking firm.

He said Satnam's flagship brand `Kohinoor' is well known both in the domestic and export markets.

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