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Our Bureau

Pune , Feb. 21

THE US-based investment bank Lehman Brothers, which had decided to pick up 8.5 per cent stake in the Pune-based KPIT Cummins Infosystems for a consideration of $8 million, has been allotted 5,70,000 equity shares of Rs 10 each. It has been allotted the equity on preferential allotment basis at a premium of Rs 610 a share.

This was made public at the extraordinary general body meeting of the company.Mr Kishor Patil, Chief Executive Officer of KPIT, told Business Line that "this is part of the overall growth plans of the company. The company is looking at an investment of $20 million over a period of three years and at certain inflow of funds. It was also looking at a good financial partner."

He, however, said there was no business commitment as such while pointing out that Lehman as a company was IT savvy, had strong IT budget and that the US firm was already outsourcing in India.

Mr Kishor said the Board had also approved to increase the limit of investment by Foreign Institutional Investors including their sub-accounts in the equity shares up to 49 per cent of the paid-up equity share capital of the company by purchase or acquisition from the market in accordance with provisions of FEMA. He said the purpose was to improve the liquidity in the market.

The Board has also put forward its plans for splitting the stocks into two equity shares of Rs 5 eachThe other resolutions included alteration of Memorandum and Articles of Association of the company to give effect to the stock split and appointment of Mr Girish Wardadkar as President and Executive Director for a period of 5 years on terms and conditions as stated in Executive Director's Agreement.

Mr Girish has taken charge since January.

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