Seven months after he resigned from the post of Chief Executive Officer and Managing Director of OnMobile Global, Chandramouli Janakiraman, and his family members, have been declassified as promoters of the company.
The board, in an announcement to stock exchanges, said the action was taken on his request. Janakiraman and his family hold 4.11 per cent in the company.
“Janakiraman is no longer involved or associated with OnMobile in any capacity but for being a shareholder and requested for the declassification,” the company spokesperson said.
Interestingly, in December 2013, the board declassified Arvind Rao, who was the other promoter of the company. Janakiraman, who was asked to step in as CEO and MD in place of Rao, resigned in May this year.
Incubated within Infosys in 2000, OnMobile -- which provides Caller Ring Back Tones (CRBT) and other kinds of services used by mobile phone users -- has had a rough ride since its blockbuster IPO in 2008, which was oversubscribed 11 times.
Allegations Allegations of financial misappropriation were rampant, made by some of the investors in the company.
The company termed these allegations as being completely false and baseless.
Largest shareholder The board, in June, appointed Rajiv Pancholy as the new CEO and brought in Francois-Charles Sirois as President and CEO of OnMobile Systems Inc, the largest shareholder in OnMobile Global.
Pancholy’s appointment was generally welcomed, with analysts hopeful the company could do well as he has a proven track record. In line with that, Pancholy decided to divest from its French subsidiary, Voxmobili.
“The decision to divest and increased focus on curbing operating expenditure comforts us on the turnaround strategy of the company,” said Daljeet Kohli, Head of Research, IndiaNivesh Securities.
The company reported revenues of ₹207.5 crore in the second quarter, a 4.4 per cent increase improvement over the previous quarter.
OnMobile clarifies
Onmobile has denied that former CEO of OnMobile Global Chandramouli Janakiraman made a statement taking responsibility for weaknesses at the time of resignation as an earlier version of this report said. The error is regretted.