Pyramid co-founder Kotecha sells 10% stake

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chennai: Nirmal Kotecha, one of the founder-promoters of Chennai-based entertainment chain Pyramid Saimira Theatre Ltd, has sold close to 10% stake in the company. After the divestment, which took place in several tranches in the open market, Kotecha’s holding came down to 15.48% as of Monday, from 24.89% as of the quarter ended September 30. Simultaneously, PS Saminathan, another founder-promoter of the company, has hiked his stake from 21.97% as of last September to 24.45% as of December through inter se transfers.

According to a regulatory filing with the stock exchanges, Pyramid has stated that Kotecha sold 6.49% stake in the company between December 19 and January 2 in 16 transactions on the Bombay Stock Exchange as well as the National Stock Exchange (NSE). Through the transactions, Kotecha pared his stake from 21.98% to 15.48%. As of the quarter ended September, promoters held a total of 53.60% in Pyramid Saimira. Pyramid Saimira stock closed on Tuesday at Rs 41.40 on the NSE, up by 0.12%.

The Chennai-based entertainment chain had hit the headlines recently when its promoters sought a CBI probe into the alleged manipulation of its stock by business rivals. The company claimed that a missive purportedly sent by markets watchdog Sebi directing its promoters to make an open offer for an additional 20% stake in the company at a price of Rs 250 a share was forged by certain operators in order to manipulate its stock price.

In fact, the company went on to state the next day that the letter it had received was confirmed to be a forgery by the fact that Sebi denied sending any such letter. The matter is still under investigation.

Company chairman PS Saminathan had earlier said that he would buy out co-promoter Kotecha’s stake in the company under guidelines laid down by Sebi. But Kotecha selling shares in the open market clouds the Pyramid Saimira case even further. While it is true that Saminathan wanted to raise his shareholding in the company by buying out Kotecha’s 22% stake, experts and analysts are hard pressed to explain why Kotecha sold out at such a low price.