Citigroup arm buys stake in SSI
By siliconindia   |   Thursday, 16 October 2003, 19:30 IST
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CHENNAI: Citigroup’s investment arm Citigroup Global Markets (M) has picked up a little over five per cent stake in Chennai-based software service company SSI. The shares have been acquired in the secondary market during the last three months, after June 30. The share price of SSI has increased from a low of Rs 60 to a high of Rs 140 per share since then. Currently it is hovering around Rs 127. In an intimation to NSE on Wednesday, SSI said, “Citigroup Global Markets is holding 6,86,021 equity shares of Rs 10 each as on October 15, ’03, which works out to 5.094% of the total equity share capital of the company”. This investment has not impacted any change in the shareholding of Kalpathi family, the promoters of SSI, which also has a majority holding in Aptech. The promoters have 27.81% holding in the company. When contacted, Kalpathi S Suresh, chairman & CEO of SSI, confirmed the holding of Citigroup. “The recent restructuring of our operations will result in a strong recovery of the company’s services business in the next 12 months. We continue to look at opportunities for consolidation, which will help the company to co-exist with the large players in the services business”. SSI is currently in the process of going debt-free. It recently initiated the process of sale of its offshore development centre (occupied by TCS on lease) at Vadapalani, Chennai. (source: ET)

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