Mumbai: Information technology (IT) services company KPIT Technologies Ltd has clarified that neither its promoters nor foreign or domestic institutional investors plan to sell any stake in the company. In a statement to the BSE, the company clarified that management had no plans to cancel a dividend payment either.

On Thursday, the company’s stock hit a three-year low, falling over 14% intraday, after some news channels reported that its promoter, foreign institutional investors (FIIs) and domestic institutional investors (DIIs) are planning to sell some stake in the company. The reports said the company planned to cancel its dividend.

“We would like to clarify that the promoters are not selling their stake. Secondly, there has been no change in the shareholding of foreign institutional investors and domestic institutional investors", the company said in a notice to BSE on Thursday.

“The board of directors of the company has proposed to the shareholders declaration of dividend at the rate of 55% at the forthcoming annual general meeting and there is no thought of cancellation of this dividend" it added.

FIIs held 31.17% while DIIs had 11.18% stake in KPIT Technologies as on 31 March, according to shareholding data available on BSE. FIIs and DIIs held 33.61% and 8.93%, respectively, in the company as on 31 December, 2014.

Earlier in morning trade, KPIT Technologies’ stock fell 14.2%—its sharpest fall since 30 April and touched a low of 85.05—a level seen on 30 April 2012.

In the quarter ended 31 March, KPIT Technologies reported a consolidated net profit of 50.31 crore, down 18% from a year ago while net sales at 763 crore was up 9% from a year earlier.

It also warned its shareholders that its overall revenue during the June quarter may see a sequential marginal decline. “This is seasonal business, where we expect to see decline in this quarter as compared to last quarter. As a result of this we expect a marginally decline in overall revenues of first quarter sequentially and consequent decline in profits", the company said in a notice to BSE.

However, on an annual basis, the company says it is positive and expects to deliver a “better performance as compared to the previous year".

The stock hit a life-time high of 232.70 on 23 January but has since fallen 61%. Shares of KPIT Tech closed at 90.15 on BSE, down 9.08% from its previous close while India’s benchmark Sensex Index was up 0.60% at 27,895.97 points.

The company said in the statement that it is in the process of taking appropriate legal steps against the persons spreading rumours.

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