PentaSoft plans pvt. placement of 15m shares

BANGALORE: Pentasoft Technologies Ltd. (formerly Pentafour Communications

Ltd.) is planning a private placement of a maximum of 15 mn equity shares

through the book building route at a price of Rs 700 per share.

The company plans to raise at least Rs 1,050 crore, said Pentasoft

Technologies chairman Dr V Chandrasekaran. The price has been arrived by going

at the average price of the last six months, or two weeks, whichever is higher,

said the company. The paid-up capital, at present Rs 8.1 crore and will rise to

around Rs 22 crore consequently. However, the promoters' share in the company

will remain at the present 33 per cent, said Dr Chandrasekaran.

The fund raising follows the business reorganisation done earlier where

PentaSoft Technologies Ltd. acquired the business software division of

PentaMedia Graphics Ltd. (earlier Pentafour Systems and Software Ltd). The

acquisition of software division is being done at a consideration of $ 205 mn

based on the valuation undertaken by PricewaterhouseCoopers.

This acquisition which has to be done within 120 days from now, will consist

of a cash component (minimum of 30 per cent) and a stock component (maximum of

70 per cent), said Dr Chandrasekaran. The funds raised will go towards this

acquisition as well as other acquisitions for future expansion.