Date:08/08/2007 URL: http://www.thehindubusinessline.com/2007/08/08/stories/2007080852360300.htm

Back Deccan Chronicle MD gets shares worth Rs 1,170 cr as gift from promoters

Our Bureau

Hyderabad, Aug. 7 Deccan Chronicle Holdings Ltd (DCHL), publisher of Deccan Chronicle, today informed the stock exchanges that two of the promoters have gifted 4,96,92,416 equity shares in the company to a third promoter, which at c urrent market value is worth roughly Rs 1,170 crore.

The shares were gifted by Directors Mr T. Venkattram Reddy and Mr T. Vinayak Ravi Reddy in favour of Mr P.K. Iyer, Managing Director.

Mr Iyer’s holding in DCHL has shot up from 519,000 shares (0.21 per cent) to 49,692,416 shares (20.36 per cent).

According to analysts, the inter se transfer by way of gift within promoter’s Group attracts tax (as per provisions of income-tax) to be borne by the person/persons who makes the gift.

Mr Iyer joined the Deccan Chronicle Group as Director (Finance) in 2001-02.

A key person behind the growth of the company and the public issue and expansion plans since 2004, he was elevated to the promoter’s Group in June-September 2006 with a small equity holding.

As per DCHL’s information to stock exchanges, the shareholding pattern as on June 30, 2007 shows that the main promoters hold 61.09 per cent and the public and others, including MFs and FIIs, 38.91 per cent.

The company’s shares ended the day down at Rs 236.35, from the previous close of Rs 237.05, on the BSE.