Visualsoft To Issue 2-For-1 Bonus Shares

The Rs 70 crore information technology corporate VisualSoft Technologies Ltd has decided to issue two bonus shares for every one share held by the shareholders.

The resolution pertaining to the issue of 2:1 bonus shares will be placed before the shareholders at the company's forthcoming annual general meeting on May 27.

With the introduction of the proposed bonus offer, the company's paid up and subscribed capital will go up to Rs 19.65 crore from the current level of Rs 6.55 crore.

The Hyderabad-based company has also resolved to make preferential allotment of 5 lakh equity shares of Rs 10 each at a premium to be decided by the board of directors.

The preferential issue is designed to finance the company's planned strategic alliances, joint ventures, mergers and acquisitions.

The preferential issue is to be allotted to individuals, banks, institutions, banks, overseas corporate bodies, foreign institutional investors, mutual funds and non-resident Indians.

The company plans to raise its authorised share capital from Rs 10.25 crore to Rs 25 crore to enable the board to introduce the preferential offer, bonus shares and employee stock option (Esop).

The company has decided to offer Esop for Rs 30 lakh in the form of 3 lakh equity shares of Rs 10 each. It has announced that the maximum number of options to be issued per employee is 15,000.

Selection of employees eligible for Esop will be based on the appraisal of performance, minimum period of service and likes by the compensation committee of the company.