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Money > Business Headlines > Report July 5, 2001 |
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Global Tele plans $150 million mop-up via overseas floatBaburajan K & George Smith Alexander Global Tele-Systems Ltd is planning to raise $150 million through an international depository receipt issue. The float could be either through an issue of American Depository Receipts or a Global Depository Receipt. As part of raising funds, the infotech company would list its shares in one of the overseas bourses including Nasdaq and London/ Luxembourg Stock Exchanges. The overseas listing will also give the infotech firm opportunities to use it as a currency for acquisitions and employee stock option plans, sources said. The company will be using the resources to part-fund acquisitions in India and abroad and for meeting working capital requirements. "The timing of the overseas float will depend on the market conditions," Vijay Paranjpe, chief financial officer of Global Tele-Systems said. The company is looking at offering the equity shares to strategic investors, banks, individual investors, etc. It will seek shareholders' approval at its annual general meeting on July 30. It is also planning to increase the foreign institutional investors' investment limit in Global Tele-Systems to 49 per cent. The increased limits would facilitate the additional participation of FIIs in the growth of the infotech firm. Global Tele-Systems' capital expenditure has been pegged at Rs 3.50-4.70 billion over the next 2-3 years. The company continues to expand its activities on a global scale to become a world player in providing software, e-commerce, integrated tele-solutions, engineering services, Internet and call centre services. The company will also be issuing stock options to its employees. It is planning to allot 1.5 million warrants and 1 million warrants to the trusts of the company and its subsidiaries, respectively. The company is also looking at changing its name from Global Tele-Systems to GTL Ltd or GECS Ltd. The present name depicts more of a telecom business. Over the years, the focus of the activities of Global Tele-Systems is shifted to areas like software, e-commerce, Internet-related infrastructure and engineering services. In order to facilitate expansion of capital base in future, the company will increase the authorised share capital from Rs 1 billion to Rs 1.25 billion by creation of 15 million additional equity shares of Rs 10 each and 1 million additional preference shares of Rs 100 each. YOU MAY ALSO WANT TO READ:
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