As part of its move to delist IIS Infotech Ltd from OTCEI, FI Group is making an open offer to pick up 4.75 lakh equity shares of Rs 10 each (3.31 per cent) at an attractive price of Rs 100.9 for fully paid up equity share and Rs 91.88 for partly paid up equity. This throws open an excellent exit opportunity for investors who will be able to offload the illiquid stock. IIS Infotech at present is hardly traded on OTCEI.FI Group's shareholding in IISIL has gone up to 96.69 per cent (around 1.39 crore shares) after its first offer made in January 1998 to pick up 1.09-crore equity shares at a price of Rs 100.9 for fully paid up equity share and Rs 91.88 for partly paid up shares. On completion of the second offer when public holding will stand reduced to zero, IIS Infotech will seek delisting from OTCEI.
FI Group has to shell out nearly Rs 4.79 crore for the second offer and has decided to meet the fund requirement through internal accruals. For this purpose, FI Group had opened an escrow account with SBI atthe time of its first open offer, which has a balance of Rs 90 lakh. FI Group has also opened a special account with SBI which has a balance of Rs 1.8 crore after meeting all the liabilities on account of the first offer. FI Group has applied to RBI for permission to continue the same escrow account for the second offer and transfer Rs 30 lakh from special account to make the total escrow account of Rs 1.2 crore which will be more than 25 per cent of the total consideration payable under the second offer.
The offer price on partly paid up share is arrived by deducting the unpaid allotment money alongwith interest of Rs 9.32 from Rs 100.9. The offer, which opened on May 15, 1998, closes on June 13. DSP Merill Lynch is the manager for the offer.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
