The Hindu Business Line : Kemoil open offer for addl stake in Calsoft

Mumbai, Aug. 21 Kemoil Ltd has made an open offer at Rs 100 per share to pick an additional 20 per cent stake in the BSE-listed California Software Solutions (Calsoft). The open offer, if fully subscribed to, may see Kemoil’s equity stake in Calsoft, currently at 47.71 per cent, go up to 67.71 per cent.

Founded in 1992, Calsoft is a software company providing product development services and product-based solution services.

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

This open offer became mandatory under the SEBI regulations after Kemoil was allotted 22 lakh equity shares on a preferential basis at a price of Rs 100 per share (including premium of Rs 90) on August 17, for which it invested Rs 22 crore.

The company was also allotted 9.3 lakh equity shares on conversion of debentures it held in Calsoft. “So far our expansion plans and strategic initiatives were funded internally. The support of Chemoil would accelerate the pace of growth,” said Mr S. Santhosh, Managing Director and CEO, California Software Company Ltd.

Religare Securities Ltd will be the managers advising Kemoil on the open offer.

Reacting to the development, the Calsoft scrip was up by 1.06 per cent to close at Rs 85.85 on the BSE today.

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