NEW DELHI: The failed move to buy Maytas Infra through Satyam has cost the Rajus dearly. As per an analysis by ETIG, the Raju family (B Ramlinga
Raju, chairman, Satyam Computers, Rama Raju Jr, promoter of Maytas Properties and B Teja Raju, vice-chairman, Maytas Infra) lost nearly Rs 597 crore in a day due to a fall in the stock value of Maytas and Satyam on the Bombay Stock Exchange (BSE). While the Rajus lost nearly Rs 397 crore of their shareholder wealth in Satyam, they lost another Rs 200 crore due to crash in the Maytas scrip.
The Maytas stock fell by 25% to Rs 388.25 on the BSE on Wednesday compared to its previous close of Rs 485.30 on Tuesday. On the other hand, the Satyam stock fell to its 52-week low on the BSE to Rs 158.05, a fall of 30% from its previous day’s close of Rs 226.50. Satyam chairman Ramalinga Raju had announced the deal after closing of the markets on Tuesday.
The ETIG analysis is based on the direct shareholding of the Raju family in Maytas and Satyam, as on September 30, 2008, which incidentally remains the same as of today. Promoters’ holding in Maytas Infra stands at 36.6% while it’s pegged at 8.6% in Satyam.
Interestingly, besides the 36.6% promoter holding in Maytas, some shareholders who appear to be related to the Raju family hold another 17% but do not figure among the promoters.
They include B Rama Raju, son of Satyam chief B Ramalinga Raju, who figures among both promoters and public shareholders. He holds 8.74% as part of public shareholding, besides being part of promoters with a shareholding of 2.52% in Maytas Infra.
If we include the holding of these three large shareholders, B Rama Raju, Radha Raju Byraju and B Suryanarayana Raju, with the promoters stake, the Rajus have lost another Rs 100 crore as part of their shareholding in Maytas Infra. This takes their total erosion in wealth to around Rs 700 crore($140 million).
Meanwhile, on Tuesday, Satyam ADR closed at $5.7, registering a fall of 55% on Nasdaq, post announcement of the buyout. The ADR has, however, recovered to $8.05, post the company calling off the deal.
Interestingly, the Maytas Infrastructure stock has been trading in the range of Rs 355–518, in the past six months. On the other hand, other infrastructure stocks like IVRCL Infra, Gammon, Nagarjuna, HCC, have crashed up to almost 80% in the same period.
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