Megasoft company have received approval for reclassification of holdings of Ravindra Sannareddy and his family from 'Promoter & Promoter Group Category’ to Public Category in the company.
Sannareddy promoted Megasoft in 1999 and has been instrumental in the growth of the company, and to opt out of promoter category.
The Board of Directors of Megasoft, through a letter dated October 21, 2020, informed the NSE and BSE for reclassification of holdings of Sannareddy and his family from 'Promoter & Promoter Group Category’ to Public Category in the company, under the provisions of Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Sannareddy said that he has been keeping out of the company’s business activities for a long time, after the merger of Xius with Megasoft.
He came out of the Directorship and Chairmanship of the Board in September 2012 itself.
Since his equity stake has significantly reduced after the merger of Xius, and the fact that he is no way concerned with the management of the company for a very long period, he has requested that he no longer be classified as the promoter, and hence the re-classification was necessitated and approved, he said.