Satyam okays FII limit hike to 60%

The board of Satyam Computer Services Ltd has approved the hike in foreign institutional investors' (FIIs) limit from 49 per cent to 60 per cent.

The company has made an application to the Reserve Bank of India for its approval. The FII limit in Satyam reached 49 per cent on July 9, which prompted the management to seek a higher limit.

The company's shares closed Rs 8.2 lower on the National Stock Exchange on Friday at Rs 198.6 and and Rs 7.15 lower at Rs 199.05 on the Bombay Stock Exchange.

Institutional holding in Satyam is one of the highest in the country at over 56 per cent.

As on March 31,2003, foreign investors held 43.02 per cent in Satyam's Rs 62.9 crore equity. Banks, insurance companies and financial institutions had 4.37 per cent stake, while mutual funds and UTI combined held 8.88 per cent, taking the total institutional holding to 56.27 per cent.

The promoters hold 20.74 per cent stake, while the Indian public and ADS holders hold 8.47 per cent and 10.6 per cent stakes respectively.

Interestingly, of the total outstanding shares of 31,45,42,800 about 3,92,90,089 shares or 12.49 per cent of the shares are still held in the physical form, while the rest are held in dematerialised format.