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|May 14, 1998||
Software Solutions to rope in FIIsSoftware Solutions Integrated is to place 450,000 shares with foreign institutional investors.
Caspian Securities has been appointed as brokers to the deal to rope in the FIIs and perform other related exercises in this context. The company is also considering an 'employees stock option plan'.
SSIL CEO K S Suresh is reported to have said that "at present we are looking at a premium ranging between Rs 360 and Rs 370''. However, the final rate
"Once Caspian presents its report we will ascertain it and get approval from the shareholders before we place these with the FIIs," Suresh added.
SSIL would get around Rs 150 million out of this issue. The prime idea behind the private placement is to enhance the training facilities of the company and add more labs. The company is also planning to enter North India and set up branches there for software training, Suresh added.
"With these funds, we will implement Enterprise Resource Planning immediately,'' he said. ERP has been identified as the focus area and implementation of this would enhance the image and profitability of SSIL.
SSIL would also retire high cost debt that it at present has from three bankers. The bankers are Union Bank of India, State Bank of India and IDBI. "The debts range between 17 and 19 per cent rates, and we will retire around Rs 40 million to Rs 50 million of these debts,'' he said.
The company is also planning an ESOP. "We will have a trust fund to have this implemented.'' Employees who complete three years of service with SSIL can avail of this facility. "This is essential for us to retain the best people with us,'' he added.
The other aspects of the ESOP are being worked out.
"After the entire package is ready, we will call for an extraordinary general meeting to get shareholders' approval,'' he added.
The ESOP would not be done immediately, as discussions with the right agencies are currently under way.
"We want to deliver value to our employees and that has been the driving force to initiate thinking on ESOP,'' Suresh said. The present paid-up share capital of SSIL is Rs 47.3 million and of this, the 450,000 shares that are to be placed with FIIs represent 9 per cent of the present equity.
- Compiled from the Indian media
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