Calsoft rights issue to open on April 26

CHENNAI: The Rights issue of the Chennai-based Calsoft

Software would open on April 26 this year, the company said. Speaking to the

media, S (Sam) Santosh, managing director and CEO said: "Calsoft has grown

organically as well as through synergistic acquisitions in the last the

financial years. We needed to infuse additional equity to meet our further

growth and expansion needs and chose to come out with a rights issue."






K Narasimha Nayak, chief financial officer, Calsoft

said: "We opted for the rights after considering various modes of fund

raising for our expansion needs. Calsoft is approaching the capital markets with

rights issue after a decade since its IPO in 1996."






The company said that the parameters would be in the ratio of 7:10, i.e., 7
Rights shares for every 10 existing equity shares, at a price of Rs 66 per

rights share, inclusive of premium of Rs 56 per share.






The total number of rights of shares to be issued would be 34, 44, 762 equity
shares at a face value of Rs 10.






The issue would be open for a minimum period of 30 days starting from 26th April
2006 to 25th may 2006, as per the guidelines applicable for Rights issues.






The company had earlier on March 27 notified the record date for the issue as
April 12 2006 and fixed the price.






The objectives of the rights issue are to meet the capital expenditure required
for expansion of offshore development centres, meet the enhanced working capital

requirements, invest in the capital of the existing subsidiaries to fund their

expansion and capital needs and to meet the expenses of the present issue.






Karvy Investor Services Ltd and Canara Bank - Corporate Merchant Banking
Division would be the Lead Managers for the Rights issue.