Uk Group To Buy Iis Infotech
Britains FI Group has announced that it has reached a conditional agreement to buy 76 per cent of IIS Infotech.
This is the first Indian software company to set up high speed data communication links to the UK and execute software projects for overseas clients remotely. The company has an equity base of Rs 14.39 crore with a face value of Rs 10.
FI added it plans to make a public offer for the remaining 24 per cent of IIS shares which is listed on the Over The Counter Exchangeof India (OTCEI).
Also Read
The total consideration for IIS Infotech, considering full acceptance of the public offer, is 22 million pounds(approximately Rs 145 crore), FI said. Thus the acquisition price works out to approximately Rs 100 per share. FI said it will be raising 14.6 million pound (Rs 94 cr) through a one for 12 rights issue of 2.48 million new shares.
IIS was promoted by three software professionals in 1990 as a private company. In three years the company notched up a turnover of Rs 6 crore in 1993-94. The company declared a net profit of Rs 8.69 crore for the year ended 1996-97.
Currently, the company has two development facilities in Delhi, a mainframe software. development facility in Mumbai, another facility in Banglore. It also has a subsidiary in the UK.
On the OTCEI, the IIS Infotech scrip staged a recovery, with prices rising sharply. It moved up to Rs 78.10 from the previous close of Rs 52.75 and 18,900 shares were traded.
The FI Groups strengths are in applications management where it is a market leader. The It surprised analysts in April by boosting pre-tax profits by 40 per cent to 60 million pounds.
The company is particularly strong in retail finance and service sectors and it has major clients like Barclays and supermarket chain J Sainsburys. It also has long-term contracts with both the companies.