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NIIT to attempt raising FII stake once again

Software major NIIT has once again decided to revive the controversial resolution to hike the stake of foreign institutional investors in the company from the existing 24 per cent to 30 per cent.

In a recent notice to the Bombay Stock Exchange, the company informed the exchange of it decision to take the proposal of FII equity hike before the board of directors on December 14.

T O D A Y

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This is the second time this proposal is being put before the board for approval. Earlier, the company had approached the shareholders in September year at an extraordinary general meeting but was snubbed as the shareholders opposed the proposal and NIIT was forced to withdraw it.

Company sources maintained that this move follows requests from shareholders that have written to the, company to reconsider this proposal.

NIIT Managing Director Rajender Pawar has said "We had received a request from certain shareholders for reconsidering this request and in all fairness we are taking it before the board. The board will deliberate on this issue and a final decision would be duly informed to the stock exchanges."

At the EGM of NIIT in September, the proposal received stout opposition from small shareholders as well as employee shareholders. These shareholders felt that it was not a good idea to increase FII holding at a time when the company's prices were down and this forced the management to withdraw the resolution. NIIT prices were ruling then around Rs 1,459 against the 52-week high of Rs 1,764.

NIIT prices are said to have dipped because of speculation about company Chairman Shiv Nadar selling off his stake in NIIT.

- Compiled from the Indian media

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