MUMBAI: Shareholders of India's DSQ Software on Sunday approved a resolution
to issue three million shares on a preferential basis to a strategic partner at
Rs 980 per share, DSQ said in a statement.
The price is at a hefty premium to DSQ's closing price of Rs 660.10 on the
Bombay Stock Exchange on Friday.
DSQ said at its board meeting on Saturday that it had allotted three million
shares of Rs 10 face value each to New Vision Investment.
"The company has agreed to execute a share subscription agreement with
the said strategic company outlining certain discipline and manner in which the
business of the company will be conducted and also matters relating to the
authorities of the board," DSQ said in the statement.
The firm, based in the southern city of Chennai, provided no details about
New Vision Investment. DSQ said the funds would be used for its working capital
requirements, expansion and for acquiring strategic companies in the United
States.
DSQ had said last month that it had orders worth over $125 million on hand.
Deutsche Bank AG of Germany has chosen DSQ as its global information technology
solutions partner.
It also has a tie-up with the Australian firm Bunnings Warehouse Property
Trust and two US-based firms, Parametric Technology Corp and the e-commerce
company Neuvis.
(C) Reuters Limited 2000.