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Krishnan Thiagarajan

SHAREHOLDERS of Quintegra Solutions (formerly Soffia Software) can reject the open offer being made by the acquirers — Mr V. Shankarraman and Mr R. Venkataramani — at Rs 27.90 per share. The current market price of Rs 38 and the book value per share of Rs 33.3 (as of June 30, 2005) are higher than the open offer price.

The acquirers are making an open offer to pick up an additional 20 per cent equity stake following the substantial acquisition of shares from the promoters of Quintegra.

The acquirers have bought a 31.5 per cent stake from two members of the promoter group at a negotiated price of Rs 8.90 per share. One of the directors, Mr V. Sriraman, is the brother of Mr V. Shankarraman.

Following this open offer, the company is likely to restructure its operations under the new management. As the details of restructuring have not been spelt out in the open offer document, shareholders can await the specifics before taking any investment decision. For the nine months ended June 30, 2005, the company had recorded revenues of Rs 26.8 crore and post-tax earnings of Rs 2.5 crore. The company provides software development and maintenance services to banking, insurance and manufacturing sectors.

The offer opened on December 10 and closes on December 29. Karvy Investor Services is the manager to the offer.

More Stories on : Open Offers | Software

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