Mumbai: Maars Software International Ltd (MSIL) has decided to go for a Rs 700-million global depository receipt (GDR) offer or issue of equity or convertible debentures on a preferential basis. It has also decided to increase the authorised capital of the company from the present Rs 250 million to Rs 500 million.
The company said it will issue GDRs or any other similar securities convertible to equity shares and/or issue equity shares or convertible debentures or warrants or any other instruments on a private/preferential allotment basis as convertible or otherwise as equity share for a value of up to Rs 700 million. It has also decided to call for a general meeting soon.
MSIL had posted a net profit of Rs 31.69 million for the quarter ended 30 June 2001 as compared to Rs 42.70 million for the quarter ended 30 June 2000. Net sales for the quarter ended 30 June 2001 was at Rs 180.29 million as against Rs 215.53 million for the quarter ended 30 June 2000.The other income was at Rs 1.78 million in JQ 2001 as against Rs 1.25 million in JQ 2000.
The company had last year called off a merger with Mascon Global. Earlier, boards of Maars and Mascon mutually agreed to call off the proposed merger between the two companies in the interest of the shareholders, given the current stock market conditions. But the managements felt they have the synergies to continue to be extremely strong, and decided that a worldwide strategic alliance would make very good business sense.
The two companies had approved the merger and proposed an equity swap at a 9:1 ratio (one Mascon share for every nine shares of Maars). Both the companies said calling off the merger only reflected the then market conditions and the concern for shareholders.
The alliance now plans to expand into enterprise resources solutions and develop products that address discrete manufacturing industries.