Educomp promoters to inform investors before sale, if any
The announcement comes in the wake of the scrip dipping to its 52-week low today on the BSE at Rs 1,331, down 4.51 per cent from its previous closing price.
By PTI |
NEW DELHI: Taking a step towards boosting investor confidence, Educomp, which is fighting allegations of "accounts fudging", has decided to take shareholders into confidence before its owners plan to sell stakes, company MD Shantanu Prakash said.
"We have taken two initiatives that, we hope, will go a long way in Educomp setting the benchmark in corporate disclosure and transparency.
The promoter group will disclose its intention to sell shares, if any, in advance, at the beginning of each quarter and independent certification by NSDL and CSDL on the issue of pledging of shares by promoter group," Prakash said.
The company promoters own 55 per cent of the equity, and 37 per cent is owned by FIIs. The remaining 7-8 per cent of the stake is held by the public, he said.
He said the company has informed the stock exchanges that shares belonging to the promoters have not been pledged with any entity.
The announcement comes in the wake of the scrip dipping to its 52-week low today on the BSE at Rs 1,331, down 4.51 per cent from its previous closing price.
On Friday, Educomp closed at Rs 1,401.40, up 0.53 per cent on the BSE.
Ever since media reports surfaced that the company had allegedly fudged turnover figures and its promoters had been trading in their own shares and in unquoted subsidiaries, the scrip has lost a whopping 47.85 per cent.
The company has taken measures to boost investor confidence. On February 3, it appointed global consultancy firm Grant Thornton as internal auditor and said that it would work with the government and regulators to reinstate credibility in the firm.
"We have taken two initiatives that, we hope, will go a long way in Educomp setting the benchmark in corporate disclosure and transparency.
The promoter group will disclose its intention to sell shares, if any, in advance, at the beginning of each quarter and independent certification by NSDL and CSDL on the issue of pledging of shares by promoter group," Prakash said.
The company promoters own 55 per cent of the equity, and 37 per cent is owned by FIIs. The remaining 7-8 per cent of the stake is held by the public, he said.
He said the company has informed the stock exchanges that shares belonging to the promoters have not been pledged with any entity.
The announcement comes in the wake of the scrip dipping to its 52-week low today on the BSE at Rs 1,331, down 4.51 per cent from its previous closing price.
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On Friday, Educomp closed at Rs 1,401.40, up 0.53 per cent on the BSE.
Ever since media reports surfaced that the company had allegedly fudged turnover figures and its promoters had been trading in their own shares and in unquoted subsidiaries, the scrip has lost a whopping 47.85 per cent.
The company has taken measures to boost investor confidence. On February 3, it appointed global consultancy firm Grant Thornton as internal auditor and said that it would work with the government and regulators to reinstate credibility in the firm.
The company had earlier rejected reports of promoters pledging shares and had said, "The promoters group has so far sold only about 5.07 per cent from the IPO till date. The promoters still hold 55.03 per cent in the company."
Last month, Corporate Affairs Minister Prem Chand Gupta had said the government would look into reports alleging accounting fraud in the company. The stock had lost more than a quarter of its value in two trading sessions on the reports.
Subsequently, Educomp said it had filed a complaint with the economic offences wing of stock manipulation.
Prakash said that the hammering of the firm's stock is due to market manipulations and the reason is that Educomp is a high-earning stock and a highly profitable company, adding its margins are highly unlike most other traditional firms.
"Our business model is unique," he said.
Last month, Corporate Affairs Minister Prem Chand Gupta had said the government would look into reports alleging accounting fraud in the company. The stock had lost more than a quarter of its value in two trading sessions on the reports.
Subsequently, Educomp said it had filed a complaint with the economic offences wing of stock manipulation.
Prakash said that the hammering of the firm's stock is due to market manipulations and the reason is that Educomp is a high-earning stock and a highly profitable company, adding its margins are highly unlike most other traditional firms.
"Our business model is unique," he said.
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