The Hindu Business Line : Do Ramalinga Raju and family have any stake in Satyam?

HYDERABAD/MUMBAI: Satyam Computer on Monday sank deeper into a crisis with two more directors quitting the board and the company announced that lenders were possibly selling promoters equity that is entirely pledged with them.

Coinciding with dilution of promoters’ equity in the troubled company, suffering from an embarrassing failed-bid to acquire two firms promoted by the family of Chairman Mr B Ramalinga Raju, the firm announced that Mr Krishna G Palepu and Mr Vinod Dham ha ve quit taking the total resignation to three. Ms Mangalam Srinivasan quit last week over the abandoned deal.

The board had nine members before the resignations. With the Chairman and promoters having no free equity, an analyst pointed out that issues of propriety and corporate governance would become more significant in the January 10 Satyam board meeting that would consider changes in board.

Speculation has intensified that Mr Raju might be shown the door too, with institutional investors seeking a greater role for running the company.

Possibility of other players looking for management stake also could not be ruled out, a marketman said and pointed to a surge of over 10 per cent in stock prices at the bourse after the announcements by the company.

“The promoters informed Satyam that all their shares in the company were pledged with institutional lenders and that some lenders may exercise or may have exercised their option to liquidate shares at their discretion to cover margin calls,” the company said.

Lenders often sell shares to meet margin requirements, especially after erosion in the stock value. Satyam Chairman Mr Ramalinga Raju's family holds 8.61 per cent through SRSR Holdings, while institutional investors such as ICICI Prudential, Aberdeen As set Management and Fidelity hold 60 per cent. - PTI

Prev: Telecom sector growth rate slips 1.08%
Next: Dabur forays into health drink category

Business Line | NUS Index |