Ybrant Digital, listed on the BSE recently through its acquisition of the listed entity LGS Global, will raise Rs 210 crore, including Rs 100 crore from Credit Suisse and ICICI Bank, through issue of shares to three firms to fund the future acquisitions.
Experian, from which Ybrant acquired some online business, will get 1.18 crore shares with a face value of Rs 2 each, totalling Rs 110 crore in one or more tranches on the basis of preferential allotment.
“We need to pay them $100 million in cash for the buy. Of that we wanted to infuse $20 million from an existing investor and the remaining from the two financial institutions. Instead, we are offering the equity party to Experian,” Suresh Reddy, Chairman and Managing Director of Ybrant Digital, told Business Line.
Post allotment, the holding of promoters would come down to 39.78 per cent from 41.67 per cent. While Experian will have a post issue stake of 2.42 per cent, Credit Suisse would have 0.54 per cent and ICICI Bank 1.62 per cent.
The digital marketing solutions company is convening an extraordinary general meeting of the shareholders on September 20 here to get their nod for the issue.
“There will be no change in the control of the company as a result of the preferential allotment. But the composition of the board will be changed as the proposed lenders would be nominating directors on the board,” Mr C.S. Jagadeeshwara Rao, Company Secretary of Ybrant Digital, has said.
Issue to Lenders
The company would also go for optionally convertible loans for raising long term funds. It would allot 1.07 crore shares in or more tranches totalling Rs 100 crore (at a price of Rs 93 a share) to Credit Suisse AG and ICICI Bank. “The two lenders will get 26.88 lakh and 80.64 lakh shares each,” he said.