GTL promoter to up stake by 5%

Plans to sell Global Proserv, its KPO, BPO subsidiary, next year.

Global Holding Corporation (GHC), the promoter company of network services major GTL, is planning to increase its stake in the company by another 5 per cent.

TILTING THE BALANCE

GTL has hived off its KPO and BPO services into a wholly owned subsidiary

This is a part of the company's initiative to reduce its exposure to IT business

GTL had earlier invested Rs 71.87 crore in its KPO and BPO business, which employs 800 personnel

Separately, GHC has also put the knowledge process outsourcing (KPO) and business process outsourcing (BPO) subsidiary Global Proserv on the block and is expecting to sell it off by the year-end.

GTL Chairman and Managing Director Manoj Tirodkar said, "GHC will increase stake in GTL by a minimum of 5 per cent in this financial year itself, which would be funded from the promoter group's kitty. The acquisitions will be made depending on the market conditions, and only if we get it for the right price."

Tirodkar owns GHC through which he holds stakes in GTL and GTL Infrastructure Ltd. On March 28, 2008, GHC acquired 1.61 per cent stake in the network services major through the open market route increasing its stake in the company to around 40 per cent. The promoter group acquired 1,520,350 shares, and it is believed to have spent around Rs 39 crore.

Earlier on March 19, 2008, it acquired a 2.69 per cent stake in the company.

Meanwhile, GTL has hived off its KPO and BPO services into a wholly owned subsidiary, Global Proserv, and is planning to sell it off. This is the part of the company's initiative to reduce its exposure to IT business. GTL had earlier invested Rs 71.87 crore in its KPO and BPO business, and based out of Mumbai, the company employs around 800 personnel.

"We will be inviting bids from prospective buyers and expect to complete the sell-off this financial year itself so that we can concentrate on the network services business," Tirodkar said.

The company had earlier sold off its managed network and enterprise services businesses to Orange business services, the services arm of France Telecom, for around Rs 140 crore.