Thursday, June 24, 2010

HCL promoters sold stakes to collect funds for philanthropic activities

Shiv Nadar, Chairman and CSO, HCL Technologies, sold 2.5% stake to collect a fund of over Rs.58.1 billion. The money raised will be used for the Shiv Nadar Foundation’s philanthropic activities in the field of education.

The Nadars sold 16.75 million shares at Rs.347 per share but did not give out the amount it collected through stake sales.

The deal was completed on June 24, 2010. Citigroup Global Markets India and Deutsche Bank were lead underwriters for the deal.

According to data available in BSE, Citigroup Global Markets Mauritius Pvt. Ltd. purchased 3.43 million shares. Details of other buyers were not given.

On that day, share prices of HCL closed at Rs.358.85 per share, a 3.9% decline than the previous closing.

In a statement issued by HCL it said, “The sale proceeds will be donated to the Shiv Nadar Foundation to be used for philanthropic initiatives. This contribution would make Shiv Nadar one of the largest philanthropists in the country,”

The Shiv Nadar Foundation set up SSN Institutions which consists of SSN College of Engineering, the SSN School of Management and Computer Applications and SSN School of Advanced Software Engineering in Chennai.

The foundation also proposed to set up Shiv Nadar University. The university would be set near Delhi and would have a campus spreading 286 acre area. For that end, land has been acquired.

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