The Hindu Business Line : Goldstone Tech board okays GDR issue

GOLDSTONE Technologies Ltd, the Hyderabad-based software services company, has passed a resolution that entitles the company to raise up to $15 million through GDRs (global depository receipts). It also decided to hike the authorised capital from Rs 20 crore to Rs 30 crore.

After the company board meet here on Wednesday, the Executive Director of Goldstone, Mr K. Vasudeva Rao, told Business Line that "Of the Goldstone's authorised capital of Rs 20 crore, its paid-up capital stood at Rs 11crore. Upon conversion of warrants, the capital will go up to Rs 12.5 crore. "Therefore, to augment long term funds for expansion and to retire debt, the company was in the process of raising funds through a GDR offer.

"Once the shareholders approve the move, we will be able to complete the process by March 2004," Mr Rao explained.

"The company management plans to convene a meeting of its shareholders on February 11 and seek their approval for the proposed offer. We chose the GDR route as this brings in flexibility while enabling overseas investors to exit when they would like to as opposed to compulsory lock-in period in other forms of funds raising," he said.

By a special resolution, the board allotted 4 lakh securities to Mr J.A. Rao, and 1.5 lakh securities each to Mr Anil Patibandla, Mr Prasad Navaratna, Mr Ranjan B. and Mr Sandeep Khosla.

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