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C.R. Sukumar

Hyderabad , July 13

SUPERSTAR Exports Pvt Ltd (SEPL) has agreed to acquire 15.61 per cent equity holding in SQL Star International Ltd through preferential offer route.

The proposed preferential offer also includes issue of share warrants in favour of three entities, the conversion of which enables them to increase their holding in SQL Star to 38.44 per cent.

The third entity acting in concert with the acquirers is the Hyderabad-based corporate finance specialist Mr N.R. Ganti.

He is now the Executive Chairman of SQL Star and also a Director in Granules India and Pitti Laminations. The Rs 29-crore SQL Star is into software solutions and services business. It has three wholly owned subsidiaries — SQL Star Pte Ltd in Singapore, SQL Star International Inc in the US and SQL Star International Ltd in the UK.

SQL Star had recently decided to offer 25 lakh fully paid-up equity shares of Rs 10 each at a price of Rs 40 per share aggregating to Rs 10 crore in favour of two of the acquirers. The company also approved a resolution to allot 75 lakh share warrants of Rs 10 each at a price of Rs 40 per warrant to the acquirers aggregating to Rs 30 crore. Apart from this, the company also proposed to offer 25 lakh share warrants to financial investors not connected to the acquirers at the same price.

Following this, the acquirers have now decided to make an open offer to the SQL Star shareholders for 20 per cent stake at a price of Rs 41 per share in terms of SEBI regulations, merchant banking sources told Business Line. The acquirers require Rs 11.08 crore of funds for purchasing additional 20 per cent from the public shareholders of SQL Star.

"SQL Star has its core competence in the field of software services, e-learning and e-governance. The acquirers consider SQL Star to be of strategic importance in the information technology sector, which is one of the key growth sectors of the economy," the merchant banking sources said.

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