KLG Systel raises US$22mn through FCCB issue

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KLG Systel raises US$22mn through FCCB issue

KLG Systel raises US$22 million through FCCB issue

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KLG Systel Ltd ., a leading software development and organization life cycle solutions company, today announced that the company has raised FCCB to the tune of US $22 million, pursuant to the special resolution passed by the shareholders of the Company. The issue closed on Monday, March 26, 2007. Consequently, the Board of Directors, in its meeting, held on March 26, 2007 had resolved to allot the Bonds to the investors and had allotted 2200 Foreign Currency Convertible Bonds of US$10,000 each to GOLDMAN SACHS INTERNATIONAL . Bonds are convertible into Equity Shares at an initial conversion price of Rs. 400/- per share.

The FCCBs are listed on the Singapore Stock Exchange.  Elara Capital plc acted as Lead Manager to the Issue. The net proceeds from this Offering, after deduction of fees and expenses is expected to be approximately US$ 21.12 Million which the Company intends to use for new projects in Power System Solutions and expansion of existing activities in Life Cycle Solution and Power System Solutions.

Last year, in September 2006, KLG Systel had issued Global Depository Receipts (GDRs) of US $ 7.50 million. GDRs are listed on the Luxembourg stock exchange.

In addition to that Company had allotted 1,070,000 share warrants to promoters in January 2007 convertible into equivalent number of equity share at a price of Rs. 261/-.

In the nine months period  ended December 31, 2006, the company registered an increase in net income by 131.13% and touched a high of Rs. 8,252.85 lacs from corresponding nine months period of previous year's Rs. 3,570.64 lacs. The company reported a robust profit before tax, which also increased by Rs 1,257.04 lacs (223.23%) from Rs 563.12 lacs to Rs 1820.16 lacs for the nine months period ended December 31, 2006. The profit after tax increased by Rs 1003.48 lacs (258.44%) from Rs 388.29 lacs to Rs 1391.77 lacs for the nine months period ended December 31, 2006

The turnover of Life Cycle Solution software and Power System Solutions segment for nine months period ended December 31, 2006 is Rs 4286.27 lacs and 3, 966.58 lacs respectively.

Sourced From: Hanmer & Partners Communications Pvt. Ltd