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RAMInfo acquires US Web company for $7.25 million
KVVV Charya
Hyderabad, Mar 13: In a cash and stock deal, Hyderabad-based Ram Informatics Ltd (RAMInfo), has inked an agreement to acquire California-based Web technology company, Aravali Technologies Inc. as a wholly owned subsidiary of RAMInfo for a consideration of $7.25 million (Rs 31.6 crore). As per the agreement, RAMInfo will pay $1.52 million in cash and remaining $5.73 million will be in the form of allotment of 10 lakh shares of RAMInfo at a price of Rs 250 per share.To fund the acquisition of the company RAMInfo is issuing 25 lakh equity shares of Rs 10 each at a premium (which is yet to be decided according to company sources) to financial institutions and high networth individuals. It had already obtained the share holders approval for the issue in the recent extra-ordinary meeting held on February 22, 2000. Further, to facilitate preferential offer of 10,00,000 shares at a price of Rs 250 per share (Rs 10 + Rs 240) to the share holders of Aravali Technologies, the company has called for an EGM to beheld on April 5, 2000. The EGM will also seek approval from its shareholders to enhance the authorised capital from Rs 7.5 crore to Rs 10 crore. At present, RAMInfo has a fully subscribed capital base of Rs 4.07 crore which may be increased to about Rs 7 crore after the issue and allotment of shares to the preferential holders. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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