Northgate Technologies to allot shares to FIIs

Hyderabad, Sep 29 (UNI) Northgate Technologies, an internet content and technology provider, will allot USD 26.5 million preferential shares to five Foreign Institutional Investors (FIIs) to raise capital for expansion and business development.

Talking to reporters here Company Chairman and Managing Director Venkat S Meenavalli said the Annual General Meeting (AGM) had approved to increase the FIIs investment limits to 49 per cent from 24 per cent of the paid up capital.

The Board of Directors of the company had approved preferential allotment of 24,47,062 equity shares of Rs One each at a price of Rs 497.28 per share to M/s UBS Securities Asia Limited A/c Swiss Finance Corporation (Mauritius) Limited (633,700 shares), M/s Macquarie Bank Limited (633,700 shares), M/s Copthali Mauritius Investment Limited (579,450 shares), M/s India Capital Fund Limited (461,700 shares) and M/s India Institutional Fund Limited (138,512 shares).

The Board also approved to increase Authorised Share Capital of the company from Rs 18 crore to Rs 23 crore and to implement ESOP - 2006 plan consisting of 6,00,000 equity shares of Rs 10 each to the employees of parent company and its subsidiaries.

Focusing a 80 per cent growth in 2007, the company would also enter the mobile VoIP segment and the product, currently in design stage, was likely to come up by 2007, he added.

UNI DB AJ 2039