The Hindu Business Line : Hopes of profile change lift Yash Management

THE market has been re-evaluating Yash Management and Satellite, a Mumbai-based erstwhile media content provider, finance and investment company, on expectation of a transformation in its business profile.

The stock has been witnessing a surge in volumes on the BSE and an upward price movement this month.

From a 52-week low of Rs 4.15, it hit the peak at Rs 39.05 on July 18. On Wednesday, it closed flat at Rs 34 with a traded quantity of 14,696 shares. But its two-week average daily volume on the bourse is over 4.57 lakh shares.

Mr Anurag Gupta, Managing Director of Yash Mangement, confirmed that the company is indeed changing its operational areas completely. "We are dismantling the old business and the media content outfit is being hived off. Yash Management is now being shaped up as a joint venture with Cientifica, a global nano-tech research and consultancy services major. The new outfit is getting into contract research, consultancy and marketing of nano-technology related products," Mr Gupta said.

The company plans to increase its equity base of Rs 7.92 crore to Rs 45 crore. Through conversion of 9.50 lakh warrants at par to equity of Rs 10 each to six corporate bodies, who have already invested in the company, it will raise additional capital of around Rs 1 crore.

According to sources close to the development, Cientifica is slated to pick up around 20 per cent stake in the joint venture.

Mr Gupta said a preferential allotment was being planned to further raise funds to Rs 30 crore.

The company's transformation is subject to several statutory and regulatory clearances. The joint venture, after formalisation, would also mean a change in name.

At present, the company's nano-tech division - Yash Nanotech - is setting up a dedicated centre for contract research near Mumbai. "Immediately, we are starting research work in nano-tech in application areas of pharmaceuticals, paints and auto tyres for some of our clients," said Mr Gupta.

As a precursor to its collaborative research arrangement with IIT-Mumbai, Jawaharlal Nehru National Research Centre, Bangalore, and National Chemical Laboratory, three scientists have been inducted as advisors to Yash Nanotech.

The company's revenue model will be based on fees for research, consultancy, royalties and sales through certain research products and training packages, Mr Gupta said.

In the fiscal ended March 31, 2005, the company made a net loss of Rs 23 lakh and had reserves of Rs 4.31 crore. The promoters' holding was placed at 16.72 per cent and the public holding was 37 per cent.

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