It has announced that its plans to raise Rs 50 core through issue of fresh securities, the company plans to raise Rs 30 core through the preferential allotment to investors, it informed the Bombay Stock Exchange. It plans to raise another Rs 20 core through a right issue to existing shareholders. At an extra ordinary meeting on how to proceed with the issue, the company will now seek the permission of shareholders. The Spanco is involved in two lines of business, telecom integration and business process outsourcing. The telecom segment is engaged in the providing solutions in the telecom system integration domain such as the network engineering services and software sales.
The Business Process Outsourcing services focuses on International call center operations, the Spanco raised Rs 122 core from the private equity firms ChrysCapital and UTI Ventures in early 2007. The ChrysCapital picked a 14.92 percent through its subsidiary Monet Ltd, UTI Ventures picked up a 5.3 percent stake. In the right offer, if ChrysCapital participates then its shareholding may go up by more than 15 percentwhich might trigger an automatic open offer for the another 20 percent stake. In the company, another PE investors is Argonaut Ventures which has a little than 5 percent stake.
In March 2007, the private equity firms bought their stake at a price of Rs 215 per share. The Spanco’s closing price at close of markets today was Rs 29.45 up by 1.55 percent. The investment from the ChrysCapital and UTI Ventures is currently at down by 86.3 percent. The similar is true for many of the PIPE or Private Investments in Public Equity deals done during the bull markets in 2007 when the valuations were peaking. Before the bull rally started, the spanco stock touched a low of Rs 15. 25 last month. Its high in the last six months has been Rs 41 per share. By Mosaic Media Ventures Private Limited and not by Reuters, this content or articles is provided. All the rights, including copyright in the content or article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. Without the prior written permission of the Mosaic Media Ventures Private Limited, the content may not be copied, broadcast, downloaded and stored, transmitted, adapted or changed in any way whatsoever without the prior written permission.
REFERENCE:
http://bx.businessweek.com/india-offshore-outsourcing/view?url=http%3A%2F%2Fc.moreover.com%2Fclick%2Fhere.pl%3Fr1934343911%26f%3D9791
