Date:04/01/2009 URL: http://www.thehindu.com/2009/01/04/stories/2009010455791400.htm

Business

Aberdeen AMC in controlling position in Satyam Computer

A. Saye Sekhar

Rajus will retain control only if the lenders do not sell shares

HYDERABAD: Aberdeen Asset Management Company (AMC) is now in a controlling position of the beleaguered Satyam Computer Services with an equity holding of 5.12 per cent. This is many times more than the shareholding of the promoter group led by Chairman B. Ramalinga Raju, having 0.34 per cent equity, excluding the shares that are under pledge.

The Raju family’s shareholding has gradually declined from a little over 25 per cent in 2001 to 8.61 per cent by the end of September last year. The promoters floated a firm, SRSR Holding Pvt. Ltd., and transferred 8.27 per cent (5.57 crore shares) of the total shares to it and retained 0.34 per cent outside that. The entire chunk of SRSR Holdings was pledged with institutional lenders.

Institutional holding

The shares, which are not under pledge, are owned by Satyam Associates Trust (21.08 lakh shares or 0.31 per cent), C. Srinivasa Raju (1.67 lakh shares or 0.02 per cent), B. Rama Raju and his wife (1,000 shares each).

Among institutional investors, Aberdeen Asset Management is followed by Fidelity (3.42 per cent) and ICICI Prudential Life Insurance Company (2.47 per cent). The minimum held by any institutional investor in the company is 1.05 per cent.

However, among the 3.45 crore shares available with the SRSR Holding, 2.19 crore shares have been transferred to lender accounts under pledge invocation, reducing the pledged-but-not-transferred-to-lenders-accounts shares to 1.88 per cent.

The Raju family would retain control only if the lenders do not put the shares up for sale in the market further. Any movement by the lenders would weaken the promoters’ family in the company due to its dwindling equity share.

Analysts argue that Chairman B. Ramalinga Raju and the promoters group hold 5.47 per cent, even if they are pledged or otherwise.

“Just because you pledge your house while taking a housing loan by signing an agreement that the property can be sold by the finance company in the event of default by the borrower, it doesn’t mean the property belongs to the lending agency,” they say.