Singapore govt stake in Infosys crosses 5 per cent

Infy, Sonata break ICE meltdown theories

Our Bureaus

Mumbai, April 16: IT companies appear to continue to find takers even in the thick of the ICE meltdown. While Infosys Technologies on Monday announced that the Government of Singapore’s holding in the company has crossed 5 per cent, the Chennai- based Sonata Software has announced the allotment of 51,52,506 equity shares to the Franklin Templeton Holding Ltd, Mauritius at a price of Rs 53.40 per share, almost over a 100 per cent premium to the current market price of Rs 25.40 on the BSE.

Infosys Technologies in a notice to the BSE, said that the Government of Singapore now holds 5.48 per cent in the software major. The company said that it has received a disclosure to this effect from Deutsche Bank AG, the custodian for the Government of Singapore.

With this holding the total FII holding in the company has crossed the 29 per cent-mark but is much below the maximum limit of 49 per cent approved by the company’s board last week.

In the case of Sonata Software, the preferential allotment to Franklin Templeton has been done through an issue of fresh equity by the company. The funds thus raised will go towards the funding of the expansion plans which includes acquisitions mainly in the US, according to Sr VP and CFO, Thomas Joseph.

Both these announcements were welcomed by the bourses as they came just after a few minutes of opening of the markets. Infosys prices crossed the Rs 3,000-mark again on the BSE and closed the day at Rs 3,072.95, up by 7.83 per cent. Similarly the Sonata Software stock also closed 11.4 per cent higher at Rs 25.40.

Market sources said that on last Thursday there was huge buying by the Government of Singapore and it is believed that FIIs bought around 5 lakh shares from the market on that day. This was reflected in the stock price as it touched a new 52-week low of Rs 2,720 before recovering sharply. During the day, Infosys even crossed the Rs 3,000-mark before closing at Rs 2,850.

Dealers said that the Government of Singapore has been buying in the stock for a long time now, they added, however, that buying of this stake was a pure investment decision and there was not a strategic plan.