Software Solutions Places 9.25% Equity Abroad

Chennai-based Software Solutions has placed 9.25 per cent of its equity with nine institutional investors in the UK, US and Hong Kong at a price of Rs 320 per share.

Company chairman and ceo , Kalpathi Suresh, said it is planning to spend Rs 14 crore this year for expansion of its training centres in the north, commence an Oracle application centre in Mumbai and SAP in Chennai.

"The money was raised to fund our expansion plans," he said. Caspian Research was the lead manager for the placement. The placement was completed yesterday. The company has placed 450,000 shares.

Jaspreet Ahuja, head of sales at Caspian Research,said the placement was unique as nine institutional investors in US, UK and Hong Kong have invested in the firm. "The deal was completed despite the stiff sentiment prevailing about India. The price of placement (Rs 320) indicates the commitment of investors to the Indian market," Ahuja said.

Market sources also indicated that the stock will soon touch the RBI imposed 24 per cent ceiling for FII investment. It witnessed hectic trading activity yesterday, opening on the BSE at Rs 347 and ending the day at Rs 374.75 hitting the upper end of the circuit filter. The counter witnessed trading in 175,000 shares on the bourse.

The sentiment was mirrored on the NSE as the scrip touched its 52-week high. The stock opened at Rs 347 and closed at Rs 364.50 after touching a high of Rs 364.50. Brokers said that there was a huge speculative long position taken in the counter. The bourse witnessed trading in 112,000 shares worth Rs 3.97 crore.

"There were speculative long positions taken by punters. Since it was the last day of the current trading cycle, there was a lot of squaring up. As a result, there was a difference in the close at BSE and NSE," a dealer at a leading institutional brokerage said.