Calsoft rights issue to open on April 26
Chennai, Apr 17: After a decade since its IPO in 1996, California Software company Limited (Calsoft) is entering the capital market with a rights issue to meet its capital expenditure requirements.
The rights issue will open on April 26 and close on May 25.
With a face value of Rs ten, a total of 34,44,762 equity shares would be issued. The price per rights share was Rs 66, inclusive of premium of Rs 56 per share, Calsoft COO J K Nair and Director and CEO S (Sam) Santhosh told reporters here today.
Mr Santohosh said the company had grown organically as well as through synergistic acquisitions during the last two financial years. ''We needed to infuse additional equity to meet out further growth and expansion needs and chose to come out with the rights issue''.
The main objective of the rights issue was to meet the capital expenditure of Rs 700 lakhs required for expansion of offshore development centers at Chennai, meet the enhanced working capital requirement of Rs 400 lakhs and to invest Rs 1400 lakhs in the existing subsidiaries to fund its expansion and capital needs and to meet the expenses of the present issue (Rs 45 lakhs).
Mr Nair said the total requirement was Rs 2545 lakh of which Rs 2273 lakh would be raised through issue proceeds, Rs 200 lakh through working capital loans and Rs 72 lakh through internal accruals.
The rights issue was only to meet the current requirements and would not be utilised for any future acquisitions.
Karvy Investor Services Limited and Canara Bank Corporate Merchant Banking Division are the lead managers of the rights issue.