KLG SYSTEL debuts with GDR on Luxembourg bourse

By : |September 8, 2006 0

 NEW DELHI: KLG SYSTEL LTD, announced that it has issued Global Depository Receipts (GDRs) on the Luxembourg Stock Exchange.

Artha capital, DB Zwirn & Co. LP, Kelusa Capital LLC, Altima Fund, etc., have invested $7.50 million to part finance KLG expansion plan of Rs 800 million by subscribing to its GDR issue. The balance financing would be funded by promoter’s contribution, internal accruals and debts. The GDR was oversubscribed. Investment banker Elara Capital PLC in London acted as lead manager to the issue.

The GDRs traded at $ 4.05 per GDR on September 5, 2006. A GDR issued can be converted into one equity share worth Rs 10, each fully paid up.

The company expansion plan includes creation and expansion of infrastructure facilities for a research and development centre having development and demo centre; and development of intellectual property in Computational and Engineering Sciences (CES) and its flagship product in power sector, two growth drivers for the Company.

Commenting on KLG’s GDR debut Kumud Goel, MD, KLG, said, “We are delighted with the success of our inaugural GDR offering in the global financial market. The deal generated substantial demand from top tier investors in Europe and USA. We believe that this offering will allow KLG to further develop its strength in key markets within India and continue the success it has achieved so far.”

© CyberMedia News

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