After setting things right at home following massive financial fraud, Mahindra Satyam has set its eyes on acquisitions. It will acquire strategic stake in BSE-listed Dion Global Solutions Ltd that provides software products and solutions for capital markets globally.
The companies have signed an MoU under which Mahindra Satyam will pick up a minority stake in DGSL for Rs 35 crore.
In a communication to the stock exchanges, DGSL, a Delhi-based company known earlier as Religare Technova Ltd, said the stake sale would be done by way of fresh issue of equity shares.
Its board of directors approved on February 9 issue of equity shares on preferential basis to Mahindra Satyam for Rs 35 crore subject to necessary regulatory and other approvals as required.
The Dion Global board also approved issue of equity shares on preferential basis to its promoters [including any entity(ies)] forming part of promoter group company and persons acting in concert, therewith] for Rs 35 crore. An EGM will be held on March 10 to seek shareholders' nod.
Dion offers solutions in portfolio management, trading, settlement, risk management, analytics, treasury and research services – all addressing the capital markets. It has 660 clients in 62 countries.
The company said that the proceeds from the stake sale would be used by it to further enhance its offerings and geographical reach.
In the quarter ended December 31, 2011, DGSL recorded net sales of Rs 8.61 crore and net loss of Rs 50.20 lakh from the operations. But boosted by other income of Rs 1.64 crore and gain from exchange rate fluctuation of Rs 6.93 crore, the company posted a profit of Rs 8.57 crore. After tax outgo, the net profit was Rs 6.60 crore and EPS stood at Rs 1.51.
But the news did not lead to any substantial buying interest in the counter and on the BSE, the share was up by Rs 1.55 at 33.50 with a trading volume of 1306 shares around 11.10 a.m.