The liquidity problems continue to haunt the promoters of Pyramid Saimira Theatre Limited (PSTL). While one of the core promoter has seen his stake of 3.62% in the company completely eroded as the banks (pledgee) completely sold in the open market to manage the margin money, the other core promoter’s stake was reduced by 1.5% by the banks for the same reason.
Caught under severe crisis due to huge accumulated losses coupled with the 7-year Sebi ban from trading due to listing norms violations, the promoters were finding it difficult to raise enough money from the market to retrieve the pledged shares and, in turn, banks were forced to sell the same in the open market to meet their margin money, an analyst with the stock broking house pointed out.
It is reliably learnt that two PSU banks together offloaded the entire 10.78 lakh pledged shares of N Narayanan, currently the chairman and one of the main promoters of Pyramid Saimira in the open market (representing a stake of 3.62%) for unknown amount. Market sources here put that the banks have sold the the entire 3.62% stake around Rs 16 or Rs 17 a share in two different tranches on February 18 and March 2.
Similarly, banks have also sold 4.18 lakh pledged shares of P S Saminathan, managing director and the core promoter of PSTL, at the same price that of Narayanan’s on the same dates in the open market. Following which, Saminathan’s stake in the company comes down to 13.70% as against 15.15% earlier. It is interesting to note that Saminathan has almost pledged his entire stake of little over 15% with the banks/FIs long ago but yet to retrieve the same for want of funds, the sources here pointed out.
When contacted Saminathan admitted that Narayanan’s stake in the company become nil, however, he will continue to be the chairman of the company. ?It is not necessary that a person should have a stake in the company to be chairman and he will continue to function as chairman,? Saminathan said.
To a question on the banks’s move, he said: ?The banks have attached our shares (sold) towards the Rs 120 crore loan taken by us for working capital requirements. I am confident that I will retrieve the remaining pledged shares or will retain my stake in the company through fresh warrants,? he said.
To another question, he said: ?We require another Rs 40 to Rs 50 crore to revive our activities as usual. We are waiting for SAT’s (securities appellate tribunal) judgement on our appeal against Sebi?s seven year ban on us from trading and we hope SAT will announce its decision by month-end.?