DSQ plans yet another share pvt placement

DSQ plans yet another share pvt placement
ENS ECONOMIC BUREAU

CHENNAI, JAN 22: Less than a month after it made a private placement, Indian software services firm DSQ Software Ltd said it has planned to make another private equity placement of three million new shares to strategic partners.

"The company in its board meeting held today (Saturday) has approved a resolution for issuing three million shares of the company as per the price stipulated by SEBI (Securities and Exchange Board of India)," the firm said in a statement.It said it would seek approval from its shareholders at an extraordinary general meeting to be held on February 21. "These shares will be placed with strategic companies, who will add value to the company's sales," it added but did not say when.

On December 30, the firm said it had privately placed 10 million shares to nine institutional investors, including allotments of two million shares to an equity fund of Bank of America and three million to an equity fund of Credit Suisse First Boston. That allotment was done at a price of Rs 275 per share.

"The company has further decided that there will not be any further equity dilution through preferential share route," the statement added.

The company has posted a marginal increase of 7 per cent in its net profit earining Rs 14.63 crore for the third quarter period ended December 1999 vis-a-vis Rs 13.66 crore secured during the same period last year. Net sales of the company has registered a 13 per cent hike to touch Rs 72.17 crore (Rs 63.36 crore). Gross profit after interest and before taxation and depreciation was at Rs 22.75 crore (Rs 16.90 crore).