Usha Beltron Plan For Demerger Gets Shareholders Nod

A meeting of the shareholders of Usha Beltron Ltd, called under the directions of the Calcutta High Court here yesterday, approved the scheme of demerging the software undertaking of Usha Martin Group into a new company, Usha Martin Infotech Ltd (UMITL).

This has set the pace for bifurcating the Usha Martin Group's activities into two broad categories, manufacturing, which will be under UBL and the knowledge-based businessses which will come under UMITL.

UBL board has also decided to raise Rs 95 crores during the year through the ADR/GDR route or through private domestic placement. "We are keeping our options open on this and will decide on the funding route at the appropriate time," Rajeev Jhawar, managing director, Usha Beltron, told Business Standard. The funds will be for software development activities.

 

He said, UMITL currently has around 30 people most at its new facility in Gurgaon, which is poised for rapid growth. UMITL had recently increased its authorised share capital from Rs 1 crore to Rs 25 crore.

Yesterday's extraordinary general meeting was chaired by the Court appointed chairperson, Reetobrato Mitra. The scheme was put to vote by poll and 132 members favoured the resolution and five voted against it. The number of votes polled in favour of the resolution was 1,50,71,509 and 606 against.

The company will submit the details of the meetings convened today to the High Court following which the court will fix a 30-day notice period to invite any objections to the approval. After which the court will sanction the scheme as approved and the scheme will be given retrospective effect from January 1, 2000.

The highlights of the de-merger scheme recommended by PricewaterhouseCoopers were, that UMITL will allot one equity share of Rs 5 each fully paid-up against one equity share held in Usha Beltron by the shareholders on a record date to be decided after the sanction of the scheme; the face value of UBL's equity shares shall also become Rs 5 each; the shareholders of any further issue of equity by UBL after the appointed date and prior to sanction of the scheme, will also be entitled to the shares in UMITL in the same manner.

Commenting on the future of UMITL, Jhawar said, the divisions under the new company will be Usha Communications Ltd (UCT) in which UBL currently hold 42 per cent stake through holding company; UshaMartin Academy of Communications Technology (UACT) in Chennai; USOFT, software application and telecom technology company based in Gurgaon.