Raju got Rs1,230 cr by pledging shares

Raju got Rs1,230 cr by pledging shares
PTI
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First Published: Sun, Jan 11 2009. 03 24 PM IST
Updated: Sun, Jan 11 2009. 03 24 PM IST
New Delhi: Disgraced Satyam founder B Ramalinga Raju pocketed Rs1,230 crore, much before disclosing the accounts fudging to inflate profits, through pledging of promoters shares, which are now worth just about Rs66 crore.
As the enormity of the fraud is surfacing, with the government, regulators and state authorities tightening their noose on Raju and the firm, information available with stock authorities reveal that all the promoter shares held through SRSR Holding were pledged for Rs1,230 crore.
As per the statutory regulatory filings, the process of pledging started way back in September 2006, when promoter entity SRSR Holding held over 2.78 crore shares, comprising a 8.51% of total equity.
As on September-end, 2006, these shares were worth Rs2,275 crore at a price of Rs818 a share. However, at the current price of Rs23.85, the equity pledged with institutions is worth just about Rs66 crore.
These shares were worth about Rs500 crore a day before Raju made the disclosure about cooking of accounts and financial fraud, with scrip ruling low at Rs179 a share on 6 January. From the very next day, stock started plunging and touched an intra-day low of Rs6.30 a share on Friday.
In his disclosure, Raju had said that “in the last two years, a net amount of Rs1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoters shares...”
In a separate regulatory filing, Satyam has said that all the promoters shares were pledged with institutional lenders over a period of time since September 2006.
With the company hitting the downhill path after the Maytas fiasco on 16 December, the lenders started selling the pledged shares, bringing down the promoters’ equity to 2.34% as of now.
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First Published: Sun, Jan 11 2009. 03 24 PM IST
More Topics: Satyam | Shares | Ramalinga Raju | Sebi | India |