KLG Systel raises mln via FCCBs

New Delhi, Mar 30 (UNI) KLG Systel Ltd, software development and organisation life cycle solutions company, today said it has raised Foreign Currency Convertible Bonds (FCCBs) worth 22 million dollars.

The net proceeds of this offering, after deduction of fees and expenses, is expected to be around 21.12 million dollars which the company intends to use for new projects in power system solutions and expansion of existing activities in life cycle solution and power system solutions.

The Board of Directors of KLG Systel have resolved to allot the bonds to the investors and have allotted 2,200 FCCBs of 10,000 dollars each to Goldman Sachs International.

The bonds are convertible into equity shares at an initial conversion price of Rs 400 per share.

Elara Capital Plc acted as lead manager to the issue.

During the nine months ended December 31, 2006, the company registered an increase of 131.13 per cent in net income to touch a high of Rs 82.53 crore from corresponding nine months of previous year's at Rs 35.70 crore.

The profit after tax (PAT) increased by 258.44 per cent from Rs 3.88 crore to Rs 13.91 crore for the nine months period ended December 31, 2006.

KLG Systel Ltd is one of the prominent plant and infrastructure life cycle solution providers in the areas of product design and engineering, plant design and engineering, plant automation, project management and power.

UNI