It is almost three years since Mahindra Satyam investors received a dividend. While their counterparts at Tech Mahindra are consistently getting them, Satyam investors are still waiting for that elusive dividend.
In fact, they are not going to get any till the merger with Tech Mahindra is completed. Intrigued investors have raised the issue at the 25th AGM held here on Friday. “Why there is no dividend even after posting good results?” Ramesh, an investor, asked the management.
The reason is the company carries forward a loss of Rs 1,250 crore and SEBI rules say that a company with such baggage cannot give a dividend. “I was told that the company cannot offset the losses though it had cash reserves of Rs 2,750 as the latter is in the share premium account,” G. N. Ravi, a minority investor, said.
Responding to this and other queries on dividend, Vineet Nayyar, Chairman, said that Tech Mahindra investors got a dividend because that firm was consistently making profits.
It is illegal to give a dividend (to Satyam investors) in the present circumstances. “Bear with us. Stay on, you will be rewarded,” he assured the investors.