Four Soft to reduce 50% of capital

Proposes to lessen capital by paying value of Rs 29 per share

Four Soft Limited, a Hyderabad-based provider of software solutions for transportation and logistics industry, is going in for a capital reduction scheme. The company propose to reduce 50 per cent of the capital by paying a value of Rs 29 per share.

After paying the dividend and taxes, the company plans to retain Rs 25 crore for ongoing businesses and use the surplus of Rs 56 crore for the capital reduction scheme by court proceedings, which is expected to take about six months to complete. The balance 50 per cent of the shares will remain at a face value of Rs 5 per share, Four Soft said in a filing to the BSE.

Four Soft had, in August 2013, sold its software solutions business to Transport IT Solutions Private Limited, a part of UK-based Kewill Group, for approximately $43 million.

“Given the highly competitive environment, persisting consolidation trends within the software industry and the need for significant investments for future growth, the company is of the opinion that this would be an opportune time to exit the business and focus on newer and emerging areas,” the company had said in the statement.

Post the acquisition transaction, the company intends to utilise its expertise and product development capabilities in non-competitive industry areas including media and entertainment, application development and maintenance (ADM), automated quality assurance (QA) and testing services, and big data analytics.

Four Soft’s scrip ended the trade at Rs 41.15 on the BSE on Tuesday, up 4.97% per cent, over the previous close of Rs 39.20 a share.