Indian Rayon Picks Full 20% In Psi

Indian Rayon, the Aditya Birla group company, has acquired the entire 20 per cent in PSI Data Systems following the open offer at Rs 186.80 a share. Birla group sources said the offer, which closed today, had been oversubscribed.

Following full subscription to the offer, Indian Rayon's stake in PSI Data Systems has now gone up to 70.35 per cent. The offer was funded through internal accruals and entailed an outgo of Rs 28.20 crore for the company.

Indian Rayon had earlier picked up a 50.35 per cent stake in PSI Data Systems from Groupe Bull of France for a consideration of Rs 71 crore. DSP Merrill Lynch were the lead managers to the open offer.

The Aditya Birla group already has a small outfit in Birla Technologies, a subsidiary of Grasim, and the group has been looking at the possibility of integrating Birla Technologies with PSI. No decision has yet been taken on this though.

The acquisition of PSI marked the Birlas late entry into the infotech sector. Infotech has now become yet another focus area for growth for the group now. Even Birla Technologies has been weighing possibilities of growing through acquisitions.

PSI has been overdependent on its former French parent, Groupe Bull, for revenues. According to a new agreement between the company and Groupe Bull, the former parent is to continue supporting PSI or another three years, the Birlas had earlier said.

The Aditya Birla group has identified the software business, along with garments and insurance, as the growth engines for Indian Rayon. The diversified company's other businesses include carbon black, insulators and viscose filament yarn.

For the year ended December 31, 2000, PSI reported revenues of Rs 83 crore and a net profit of Rs 18.2 crore.