The Hindu Business Line : Satyam promoters corporatise shareholding

All this means is that the shares of promoters, Mr B. Rama Raju, Mr B. Ramalinga Raju, Mrs B. Nandini Raju and Mrs B. Radha Raju, in their individual capacities, aggregating to 8.5 per cent of the total company shares, will be transferred to a holding company controlled by them.

The holding company will be referred to as SRSR Holding Company and has been created based on advice of consultants.

So why have the promoters opted to do so?

The Chief Financial Officer of Satyam Computer, Mr V. Srinivas, told Business Line that this is a move to consolidate all the shares of the promoters and would help better manage the total holding in the company professionally.

Asked if this was a precursor to some stake sale, Mr Srinivas said "no that was not true. If the promoters had such intent, nothing prevented them from doing so in the current form, or in their individual capacities."

Such a practice of corporatising the shareholding is followed by most of the promoters globally and brings in professional touch in managing the portfolio of such a magnitude.

So would this bring in some tax savings if this were a corporate entity? "No. Not in the current tax regime."

ANALYST MEETS

Asked to speak about the two analyst meetings that the company held in Mumbai and New York recently, Mr Srinivas said "they helped us showcase the company business plans and strategy direction."

About the headcount addition, which the company alluded to during the meeting, Mr Srinivas said if the Nasscom numbers of 25 per cent growth were to be taken into account and read with the company performance over the next two and a half to three years, the headcount would double.

Currently, Satyam employs about 30,000 people.

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