SEBI: No order sent to Pyramid Saimira

Televisionpoint.com Correspondent | Mumbai
The Securities and Exchange Board of India (SEBI) on Tuesday said it had not sent any order or letter to Pyramid Saimira Theatre Ltd. At Tuesday's close of Rs 61.15, the stock has lost 18.9 per cent since Friday.

"It is hereby clarified that no order or letter has been issued by SEBI to P. S. Saminathan, managing director, Pyramid Saimira on December 19, 2008. It appears that the said letter is being circulated with ulterior motives. SEBI is separately investigating into the matter including the origin of the letter," the market regulator said in a release.

P. S. Saminathan

The market regulator added that it is inquiring into the dealing in the scrip after the media reported quoting a SEBI letter that Pyramid Saimira promoters had violated the substantial acquisition of shares and takeover regulations.

Meanwhile, addressing a hurriedly convened press conference, P. S. Saminathan said that "some vested interests" have forged a SEBI letter head to send such a communication to the company to tarnish its image and pummel its stock price.

"While a section of the media seems to have got a copy of the letter last Friday itself, we received it only on Monday. Some vested interests seem to have gone short, as nearly 75 lakh shares were traded on Monday, with only 25 lakh shares marked for delivery," he said.

Saminathan said that the firm is also planning to file a formal complaint with the Chennai police.

A section of the media, including Televisionpoint.com, had reported that SEBI has directed Saminathan to make an open offer within 14 days to buy 20 per cent shares at not less than Rs 250, as he had already crossed the five per cent annual creeping acquisition limit.

This was followed by a denial from the company. The episode saw the stock drop by 9.95 per cent to get locked at the circuit filter on Monday and Tuesday.

Incidentally, the open offer fiasco seems to have come as an opportunity for Saminathan to wriggle out of a planned increase in stake. He was supposed to pick up around 22 per cent of the company's stock on Monday, but that did not happen.

"This is an attempt to sabotage the intention to increase my stake in the company," Saminathan said. However, he evaded a direct reply on when that is bound to happen.

"We are yet to speak to the seller (Nirmal Kotecha) and it is for him to decide," he said, even while agreeing that the company was in touch with Kotecha over the past couple of days, but this particular issue of sale did not come up for discussion.

Kotecha recently said that the stake sale agreement between him and Saminathan would conclude very soon. "He (Saminathan) is buying the stake at Rs 200 per share as per the agreement," Kotecha said.

According to two separate disclosures made by Pyramid Saimira Theatre to the National Stock Exchange (NSE), Nirmal Kotecha has sold 8,20,066 shares of the company between November 19 and December 17. After these sales, Kotecha's holding in PSTL has come down to 21.35 per cent from 24.89 per cent.

As per the disclosures, Kotecha sold 3,80,854 PSTL shares between November 19 and December 5 through interse transfer. He also sold 4,39,212 shares of the company between December 5 and December 17 through inter-se transfer and open market sale.