Rolta shares down on stake sale, resignation buzz

DALAL STREET SPIKES

Market rumours today pulled down the shares of Mumbai-based IT software services, Rolta, by almost 60 per cent during intra-day trading. However, the company denied all rumours and the stock recovered lost ground to close at Rs 87.10 -- down by 17.75 per cent.

Some of the rumours making rounds were promoter selling stake, resignation of independent directors, and suspension by Registrar of Company (RoC).

Besides, some brokers said that one of the foreign institutional investors (FII) Goldman Sachs has sold its stake in the company. Goldman Sachs, through Goldman Sachs Mauritius holds 3.49 per cent stake in the company or over 56 lakh shares.

When contacted, Chairman and Managing Director of Rolta India K K Singh told Business Standard: “While I cannot comment on a particular investor, but I would like to say that Fidelity had written to us and told that they are increasing the stake in the company from the present 5 per cent to 7 per cent.”

On the pledged shares, Singh said that the company has reconfirmed with all the banks and non has sold any shares. The company has pledged 2.5 per cent shares with banks like Union Bank, Axis Bank, and Indian Bank. “This is a negligible quantity, a sister concern firm--Rolta Shares and Stocks, has been using this for raising working capital,” added Singh.

Singh believed that the IT sector has become vulnerable after the Satyam fiasco and hence such vent to rumours.

Rolta had recently acquired a Chicago-based Piocon Technologies, for an undislosed sum. The Piocon acquisition is a part of Rolta's systematic growth plans to provide configurable solutions that address the real challenges faced by industry today. Based on market research, it has been estimated that the size of the addressable market for such solutions would be of the order of $1 billion annually.

The promoter-- K K Singh-- holds 40 per cent of the stake in the company and FIIs have among them 24 per cent stake. Some of the FIIs that have stake in the company are Credit Sussie Singapore, LIC, and Fidelity among others.