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Infotech Enterprises has ruled out the possibility of a takeover bid. Reacting to private equity firm First Carlyle Ventures Mauritius purchasing about 10 per cent shares from the secondary market, the company said that it has no plans to dilute stake.
“They have acquired the shares from mutual funds. So, there will be no change in the quantity of shares held by the public. The promoters have no plans to sell the shares,” sources in the company said.
With the PE firm emerging as a major shareholder in the engineering services company, the board might consider taking a Carlyle nominee on the board. “There is no compulsion on us to induct them. But we might think over giving a directorship to a Carlyle’s nominee,” the source said.
Carlyle had bought the shares at Rs 190 a share by spending about Rs 211 crore. “Carlyle move to acquire stake in our company is a positive development. It shows their confidence in our growth story,” they said.
When contacted, Mr B.V.R Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, refused to comment on the issue, citing silent period ahead of the results. The company would announce the second quarter results on July 18.
The company will also hold its annual general meeting on the same day. For 2011-12, it announced a dividend of 25 per cent on shares with face value of Rs 5.
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