Ahead of next month’s crucial Board meet that is expected to give way to a change in management, Satyam Computer on Monday said promoters stake may have already reduced as a result of institutional lenders selling shares pledged with them.
“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 in a statement released early on Monday.
Lenders often sell shares to meet margin requirements, especially after an erosion in the stock value.
Satyam Chairman Ramalinga Raju’s family holds 8.61 per cent through SRSR Holdings, while institutional investors such as ICICI Prudential, Aberdeen Asset Management and Fidelity hold 60 per cent.
The company on Saturday night announced that it was postponing a Board meeting originally scheduled for today to January 10 to allow time to consider options such as reduction in promoters stake — which may result in change in management — besides, restructuring Board size and increasing value for shareholders.
Satyam Computer Services Ltd today said the promoters stake may have reduced “as a result of routine actions by the promoters’ lenders.”
The company said that the promoters have pledged the shares they held in the company to institutional lenders.
The Board meeting, which has been rescheduled, was originally called to discuss a share buyback programme to mollify investors left fuming after an embarrassing and abortive attempt to acquire two companies promoted by Raju’s family.