The Hindu Business Line : `Promoters stake in R S Software to rise to 32 pc'

Promoter and institutional holdings in R S Software, which is in the midst of a rights issue, is poised to grow significantly in the next two to three quarters, the company said here today.

Mr Raj Jain, Vice-Chairman and MD, said that after the present issue and conversion of warrants, scheduled around July 2007, promoters' stake in the enhanced paid-up capital would grow to 32 per cent from the pre-rights and pre-capital enhancement (Rs 4.91 crore) of 25.34 per cent.

Additional shares

Warrants would generate 5,62,500 additional shares arising out of 5,625 zero-interest non-convertible debentures of Rs 10 each, and having 100 detachable warrants. Conversion would be at a premium of Rs 10 per share.

According to Mr Jain, the present institutional holding of 1.53 per cent was likely to move up in view of the rights issue, for which response was "good".

The issue, which opened on October 24, is to close on November 23. "If the retail portion remains partially undersubscribed, choice for institutional investment would also arise," he added. Present FII holding is placed at 1.2 per cent, while the public holding is at 73.12 per cent.

As a result of share - related actions, the public holding, however, is likely to come down.

`Debt-free by 2008'

Meanwhile, the company has targeted to become debt-free by calendar year 2008. "We have already brought down our overall interest rate on the past borrowings by five percentage points to seven per cent and in the next fiscal it would be even lower, around two per cent," Mr Jain said.