Three global investment firms -- Morgan Stanley, Deutsche Bank and Goldman Sachs -- have picked up a total of 10 per cent stake in city-based software firm Core Projects and Technologies Ltd at a combined investment of Rs 39.76 crore (Rs 397.6 million).
Morgan Stanley has taken the largest share at 4.03 per cent. Grants Investments Ltd, the investment arm of Goldman Sachs, has taken 3.46 per cent and Deutsche Bank 2.59 per cent share, a CPTL release said on Tuesday.
The stake was picked up following conversion of foreign currency convertible bonds issued a couple of months ago.
"The conversion of FCCBs into shares shows the confidence of the investors in the business plan of the company," CPTL Managing Director Sanjeev Mansotra said.
FCCBs of the value of Rs 15.90 crore (Rs 159 million) still remain for conversion into equity shares. Core Projects had issued 1,225 FCCBs of $10,000 each on November 13.
The FCCB issue was closed and the bonds have been listed on Singapore Stock Exchange. CPTL said the FCCB issue proceeds and various internal resources have put together a kitty of about Rs 100 crore (Rs 1 billion) for the company.
It plans to utilise these funds to acquire companies in the US and UK.
"The expansion of the Offshore Development Center at Navi Mumbai is expected to be complete by end of January, 2007. This, together with the acquisitions, will have a significantly positive impact on the revenues and profits of the company," Mansotra said.
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