Deutsche Bank Sells 10% Pie In Dsq Bio

Deutsche Bank has sold off its entire 10 per cent stake in the Dinesh Dalmia-promoted DSQ Biotech. A company spokesperson, who confirmed the development, said, "They have not communicated to us any reasons for their decision."

A Deutsche Bank official in Mumbai refused to comment on the issue today, stating "we don't comment on market rumours".

The price of divestment is not known. A source said Deutsche Bank had picked up 22 lakh shares for Rs 10 each at a premium of Rs 265 a share, aggregating Rs 60.5 crore.

DSQ Biotech's shareholding as on September 30, 2001, reveals that mutual funds and the Unit Trust of India, banks, financial institutions, insurance companies and foreign institutional investors have all practically exited the company.

 

Their combined holding has dropped to 1.88 per cent or 423, 350 shares of the total 22, 506, 380 shares as on September 2001.

It is also learnt that Deutsche Bank did not nominate two of its nominees to the DSQ board.

The company had in January stated that the board has considered the bank's demand to co-opt two of its nominees on to the board.

Even in DSQ Software, another group company, institutional investors have reduced their stake.

Their combined stake has dropped to 6.76 per cent as on September 2001 from 11.53 per cent in March 2001, a decline of 61 per cent in the last six months.

During the same period, promoter holding has come down to 2.06 per cent in September 2001 from 17.28 per cent in March 2001. Promoter holding further dropped from 8.42 per cent in June 2001 to 6.75 per cent in September 2001, a fall of 1.67 per cent during July-September.

According to the company spokesperson, the promoter had diluted his stake to raise capital from funding agencies. However, he was not able to spell out the amount raised and its deployment.