The Hindu Business Line : Kemoil sheds some stake in California Software

KEMOIL Ltd, Hong Kong, foreign collaborator of the California Software Ltd (Calsoft), has sold 2.70 lakh equity shares (5.48 per cent of equity) of Calsoft in the open market.

Following the transaction that happened last week , Kemoil's shareholding in the Chennai-based software company has come down to 29.88 per cent, according to a communication issued by Calsoft to National Stock Exchange.

On the day of the transaction, Calsoft's stock price closed at Rs 132.95 on the National Stock Exchange.

The sale was part of Kemoil's portfolio management. As per an agreement, Kemoil shall hold a minimum of 24 per cent of Calsoft's equity capital or invest up to a maximum of 49 per cent, according to Mr K. Narasimha Nayak, Chief Financial Officer, Calsoft.

Kemoil, a part of the US-based Chemoil Corporation that supplies marine bunker fuels, is a foreign collaborator and a major customer of Calsoft.

Kemoil has representation on Calsoft's board and holds about 30 per cent of the Calsoft's equity, he said.

The original share allotments of Calsoft were made to Kemoil during the 1994 and 1995 - pre IPO at Rs 10 - and during IPO in 1996 at Rs 30 per share (face value Rs 10 plus a premium of Rs 20). Additional preferential allotments were made in 1999 at Rs 50 per share, he said.

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