Chairman says company can consider buying back shares.
IT major Satyam Computer's founder and Chairman B Ramalinga Raju said that he will seriously think about increasing promoters' holding or buying back of stock to enhance value for shareholders.
"Generally I do not track company's shares on a daily basis, but I have been doing it for the past week or so," Raju said when asked if he was glued to the screen to watch the movement of Satyam shares.
The company's shares have come under pressure in recent times, which he felt was in tune with the broader trend. On whether he could consider increasing promoter holding in view of the shares being at a lower level than in the past to give a positive signal to shareholders, Raju said he would certainly give it a serious thought.
In reply to whether the company could resort to buy-back options to increase value for shareholders, he said this option could also be thought of. "All the options could be considered as part of efforts to enhance shareholders value," he said adding there was nothing concrete on the agenda yet.
"No" Raju said on whether he would take these options for consideration at the upcoming meeting of the company's board on October 17.
Shares of Satyam have lost more than 40 per cent of their value in the last four months.
Raju said that the company, which is cash-rich with reserves and surplus of over Rs 7,000 crore, would evaluate all the possibilities that add value to shareholders. "We have fair amount of liquidity... Cash and bank balances are around Rs 4,000 crore. "We keep our eyes and ears open for opportunities. It has to be taken quite seriously," Raju said on possibilities such as share buyback and raising promoters' stake in the company.
"One has to look at it on an ongoing basis," Raju further pointed out. As on June 30, 2008, the company had a total promoter holding of 8.63 per cent. The company's share price closed at Rs 318.75 on Wednesday, up 7.5 per cent. It had hit its 52-week low of Rs 270.1 a day before on September 30 and has plunged sharply from its highest in one year at Rs 544 on May 30.
Over the past one month, shares have lost more than a quarter of their value. The company's market value currently stands at about Rs 21,500 crore.
