Reliance Cap acquires 7.5% stake in Mold-Tek

Reliance Capital Asset Management Limited has acquired a 7.5 per cent equity stake in Hyderabad-based Mold-Tek Technologies Ltd. The acquisition is through purchase of 6.63 lakh shares at Rs 45.02 per share in the open market.

Mold-Tek managing director J Laxman Rao told Business Standard that the Reliance acquisition was "just a mutual fund investment".

Mold-Tek was planning a major expansion of both its packaging and BPO divisions, and was in talks with some of the possible investors to secure funds to part finance the expansion programme.

"The talks in this regard have not yet been crystallised. The required funds can be now secured with the help of Reliance," he said.

For the half year ending September 2005, Mold-Tek posted a turnover of Rs 35.80 crore and a net profit of Rs 1.66 crore as compared to the Rs 27.96-crore turnover and a profit of Rs 30 lakh in the corresponding period last fiscal.

Rao said that the company was expected to end the current fiscal with a net profit of about Rs 4 crore.

According to Rao, Mold-Tek has started legal data support services from US law firms by establishing a 90-member BPO team. The total strength of the BPO outfit is poised to reach 200 by the end of this year.

On the other hand, the company has recently started commercial production of its new packaging unit at Daman.