The 8K Miles board has approved the allotment of 14 lakh warrants to promoters/ non-promoters at Rs 398.60 per warrant, which is at a 32 percent discount. Promoter holding in the company stood at 66.28 percent as on September.
The company’s non-promoters include DSP BlackRock Microcap Fund and Sundaram MF.
8K Miles acquired HR consulting firm Serj Solution in November for Rs 15.80 crore. Serj Solution has revenues of Rs 35-40 crore.
Suresh Venkatachari of 8K Miles says total warrant size is Rs 55 crore and it will be utilized for funding Serj Solution acquisition and organic growth. The company has already started the integration of Serj Solution.
Below is the verbatim transcript of Sandeep Bhatia's interview with Ekta Batra and Anuj Singhal on CNBC-TV18.
Ekta: Can you just give us a sense in terms of the warrant allotment, whom is it been allotted to and how much has been the upfront payment?
A: We allotted the board 14 lakh shares and promoters subscribed along with three investors who had earlier participated in the preferential offer and we are raising approximately about Rs 14 crore from the 26 percent exercise of the warrant.
Ekta: The total amount that you are raising, the total warrant size is around Rs 55 crore?
A: Rs 55 crore.
Ekta: Can you give us a sense in terms of what it will be used for?
A: We are using this sum for two purposes, one is for inorganic acquisition. Recently we acquired a company SERJ Solutions and also for organic growth - we are expanding our marketing in the US to leverage our Cloud and health.
Anuj: Why this steep discount for the warrant allotment, 32 percent discount?
A: There is no discount.
Ekta: Give us a sense in terms of the SERJ Solution acquisition, when would it be completed? It was announced on November 26, can you give us a sense in terms of where the process is in terms of closing the deal and when would it start showing on your numbers and how significant an addition it would be?
A: The deal is already closed. We have started integrating the company people, everything. We would be able to recognise one month of revenue for this quarter.
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