MUMBAI, March 1: Global Telesystems, a leading manufacturer of office automation gadgets, is placing 3 lakh redeemable cumulative preference shares with Bajaj Auto.The 12 per cent preference share offering issued at Rs 100 per share, follows redemption of 2 lakh preference shares held by the two-wheeler giant. Bajaj Auto has redeemed its earlier holding on February 14, which was issued by Global Telesystems at 17.5 per cent.
Bajaj Auto is one of the most cash-rich firms, and is believed to be parking most of it in low-risk debt and quasi-debt instruments. Thanks to a tax- break offered in the last union budget by the finance ministry, preference shares have made a major comeback on the corporate treasurer's menu of investment choices.
Global Telesystems is engaged in the manufacture/marketing of a wide range of office automation products, including fax machines, modern key telephone systems, wireless communication systems, computerised telexes and multichannel voice recorders. The latest preferentialallotment will bring in Rs three crore for the office-automation company.
The company had in November 1996 raised Swiss Fr 60 million (Rs 167 crore) through an issue of foreign currency convertible convertible bonds, which is open for conversion between April 1997 and October 2003.
The conversion has been at Rs 89 per share, and as per the latest available figures, bonds amounting to Swiss Fr 2.3 lakh has been converted into 73,630 shares.
This, the company claims, has been the first ever conversion which have taken place in the country for a Swiss bond issue.
Global Telesystems manufactures fax machines, modern key telephone systems, wireless communication systems, computerised telex machines, multi-channel voice recorders, and various kinds of communications software.
The company has also entered into a number of distribution and servicing tie-ups with Tata Keltron, Escorts, and India Telecom.
The company also has a number of foreign technical tie-ups, which include collaboration with V-BandCorporation and Maxon of the United States and Lane Telecommunications of the United Kingdom.
It has also entered into a similar tie-up with Murata Machinery of Japan and has a strategic alliance with Teledata of Singapore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
