The Hindu Business Line : SQL Star to raise Rs 50 crore, restructure operations

SQL Star International Ltd., has sewn up plans to raise Rs 50 crore to fuel its expansion-cum-restructure plan. The move follows change in the company management control earlier this year.

The Executive Chairman of SQL Star, Mr N.R. Ganti, said that the company's EGM approved issue of 15 per cent equity share as preferential allotment, which would help raise Rs 10 crore.

This is to be followed by issue of one crore warrants convertible at Rs 40 within 18 months. This would help further raise Rs 40 crore.

"While the current equity is Rs 12 crore, this will go up to 25 crore. Last fiscal, the company (accounting is January-December), revenues stood at Rs 28 crore. This year, projected total revenues are Rs 40 crore. While planning to change the financial year to April-March, the company has projected total revenues of Rs 96-100 crore by 2006-07," Mr Ganti said.

Addressing their first press conference after acquiring controlling stake, Mr Ganti announced that Sun Microsystems has appointed SQL Star as its authorised education partner in India.

Following this agreement, SQL Star will offer Java courses to students in its eight training centres spread across the country.

The company recorded about 65 per cent of its revenues from its learning division.

Apart from training from its eight centres, the company is eyeing tier II cities while laying thrust on corporate training, he said.

Mr Ganti and other venture capital companies had acquired controlling stake in SQL Star. Thereafter, they made open offer to acquire shares in the company. The earlier management has fully exited the company operations.

SQL Star has acquired both the company business and the assets. This mans that they have inherited about Rs 8 crore in debt.

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