The EGM ofVS Pradeephas approved an allotment to 4 lakh shares to Bharat Sheth and relatives.

VS Pradeep, MD at Accentia Technologies says the preferrential allotment money is due any time and the total sum of money raised will be around Rs 55 crore for funding acquistions in US and UK.

Excerpts from CNBC-TV18's exclusively interview with VS Pradeep:

Q: If you can tell us about this preferential allotment, how much money have you raised and when does the conversion happen of these and at what rate would it be?

A: Actually the preferential allotment money is due any time, probably this week and just 2 lakh warrants have been issued to the Group and that money is expected most probably in the next two months. The total sum that we are raising in the next two to three months is close to Rs 55 crore for our acquisition funding mainly in the US and UK.

Q: Once there is a conversion of these warrants how much equity dilution would there be, what is the promoter holding, what would it be down to?

A: We are expecting our total equity to be around 12.5 crore, at the end of all the dilutions, including the GDRs, which is expected to open early next month, in the Singapore and Luxembourg stock exchanges. At the end of all this dilution, it will be 12.5 crore and the promoter contribution is going to be 45% of the equity.

Q: The conversion will happen at Rs 167 per share?

A: Exactly.

Q: With reference to funding both the acquisitions; GRS Physicians and GRS Systems are the two acquisitions you have made. How much did you pay for these companies and will this money be enough to completely pay out the deal?

A: We have done these acquisitions at 0.7 revenue multiples and we are doing a 25% cash and 75% stock deal with these companies’ acquisitions, and 75% stock is mainly through the GDRs, which we are listing in the Luxembourg and Singapore stock exchanges. So, the valuation is basically 0.7 revenue multiples, which would give us very good leveraging on the money that we are raising for this 25%.

Q: Give us an idea of the merger of Geosoft and Iridium, what is the kind of scale that you hope to be able to achieve with these two now as part of Accentia?

A: We had been growing at around 100-110% over the last three years with Geosoft and Iridium and with the acquisitions happening in the US, we are expecting to grow at around 200-250% this year with the two companies that we have acquired and one more company that we have acquired recently is Ascent Infoserve in Bangalore, that also is expected to grow at almost the same levels.

Q: So, in terms of employee strength if you can give us an idea of what kind of total revenue you could be looking at with these?

A: With these acquisitions in the US and the Indian acquisition, our employee strength has gone up to around 1,700 people with 350 people working from the US alone. This employee strength is expected to grow by almost 150% in the next one and a half years.

Q: What are you expecting in terms of topline and bottomline?

A: Topline, this year we are expecting Rs 110 crore and a bottomline of around Rs 35-37 crore.

Q: Any more acquisitions that you are looking at, on the anvil at this point in time and which geographies would you essentially be focusing on?

A: We had already entered into LOIs with two more companies. So in all, it will be five companies that we will be acquiring in this financial year and one of the companies is in UK, which is into solution providing for hospitals in Australia and the UK. We are actually targeting ourselves as a company that provides the entire solutions and service backup for hospitals and healthcare facilities in the UK and America.