Dsq To Fix Placement Plan Today

Chennai-based software company, DSQ Software will finalise the modalities of the proposed private placement of 30 lakh equity shares to foreign institutional investors (FIIs) and strategic partners on May 20. The company intends to use the funds raised for acquisitions in and outside the country.

DSQ has already sought shareholders' approval for the private placement and appointed international consultants, KPMG Peat Marwick, to advise it on the acquisition plans.

The company has also received shareholders' permission to hike its authorised share capital from the present level of Rs 50 crore to empower the private placement.

The strategic investors with whom DSQ is in talks include a few customers of the company. DSQ managing director had earlier said that some key customers had evinced interest in picking up a stake in the widely-held company. The placement is expected to be at a huge premium as the scrip has been quoting at a high price on the bourses.

 

According to the Sebi formula, the pricing will be determined by the three-months average quotations. The scrip, which touched a 52-week high of Rs 2,820 on the Bombay Stock Exchange, is currently hovering around Rs 600.

The Rs 275-crore company, which has forged a partnership with US-based e-business firm Neuvis Inc, expects a business volume of $48 million in the next two years.

The company has also signed an agreement for formation of a new IT company jointly with Bank America Investment Corporation with an equity base of $20 million for servicing financial markets.

DSQ has also signed an agreement with Bank America Investment Corporation to promote a new IT venture for servicing financial markets. The company will have an equity base of $20 million.

The shareholding pattern of the company currently stands at: foreign holders - 0.50 per cent; institutions - 2.43 per cent; promoters and companies - 6.53 per cent; and public - 90.53 per cent.