Fidelity's stake in Satyam tops 5 per cent

The shareholding of Fidelity Management & Research Company, a wholly owned subsidiary of the US-based FMR Corp, in Satyam Computer Services has crossed five per cent.

With fresh purchases, Fidelity has emerged as the second-largest foreign institutional investor (FII) in Satyamof equity through  after Templeton Global Advisor, which holds close to 9.16 per cent two investment arms.

Fidelity has increased its stake in Satyam from 48,73,900 shares, or 1.54 per cent, on December 31, 2003, to 1,57,58,190 shares, or 5.01 per cent, of the Rs 63.18 crore total equity. Without disclosing the names of the sellers, Fidelity informed the stock exchanges that it had increased its stake in Satyam.

Templeton Foreign Fund held a 5.9 per cent stake in Satyam as on December 31, 2003, while Templeton World Fund held 3.26 per cent.

FIIs hold a 54.48 per cent stake in Satyam against the maximum permissible limit of 60 per cent. Copthall Mauritius Investment with 3.8 per cent, Merrill Lynch with 3.64 per cent and Morgan Stanley Dean Witter with 3 per cent were the other major FIIs in Satyam during the last quarter. Citigroup has also increased its holding in the company during the last quarter from an earlier level of less than 1 per cent.

Warburg Pincus, which held about 5.32 per cent during October 2003, has reduced its exposure to Satyam to a negligible level by December end.

Inclusive of the 10.61 per cent shareholding represented by the ADR holders, the total foreign holding in the company exceeded 66 per cent as of December 31, 2003.

Indian promoters, including Satyam's chairman Ramalinga Raju and his brother Rama Raju, held an 18.3 per cent stake, while the Indian public shareholding represented 4.82 per cent.

Domestic institutions held 12.33 per cent with the Life Insurance Corporation holding a 3.59 per cent stake in the company.