Hcl Plans Open Offer To Hike Stake In Three Arms

Shiv Nadar and the promoters of the HCL group are making an unconditional open offer in three listed subsidiaries of HCL Infosystems in order to shore up the promoters' shareholding and offer investors an exit route.

The companies are HCL Office Automation, International Data Management, and Network Ltd and the offer sizes and the offer are being managed by SBI Capital Markets. In HCL Office Automation, which makes photocopiers and EPABX systems, the promoters hope to acquire 21.84 per cent of the Rs 14.65 equity at a price of Rs 8.30 per share. The promoters currently have a holding of 33 per cent in the company. The company made a loss of Rs 23.12 crore in the 12 months ending October 1997. However, the open offer price is significantly lower than the market price which has risen to Rs 15-16 levels.

There was speculation that HCL Infosystems was likely to merge the subsidiaries with the parent. In International Data Management, where the shares of the company are infrequently traded, the open offer for 82 per cent of the shareholding is at Rs 2. The company involved in providing technical know-how and consultation to clients made a loss of Rs 4.48 crore on an equity capital of Rs 2.2 crore. The promoters' only have a 7% stake in this company.

In Network Ltd, which was in typewriters business and medical imaging systems, the promoters want to buy 30.14 per cent of the shares at Rs 3.80 per share. The shareholders have a 60 per cent holding in the company currently.