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Mascon to float $40-million GDR in 2-3 weeks

Mascon Global Ltd, an Indian software services company, plans to float a global depository issue in the next two to three weeks, to raise up to $40 million to be partly used to finance acquisitions, an economic daily said on Tuesday.

The Business Line quoted Mascon's chairman Sandy Chandra as saying: "Although we have an approval...for a $150 million GDR issue, we have decided to go in for a smaller issue this time round, since the markets are not in good shape."

The company issued a statement through the Bombay Stock Exchange website late on Monday also saying its board was considering a GDR issue.

Mascon develops software for the financial services, telecommunications and retail sectors and counts several Fortune 500 companies amongst its clients.

Mascon's GDRs will be listed either on the London or the Luxembourg stock exchanges, the paper said.

Part of the money raised would be used as working capital, and some to fund future acquisitions in the communication technologies and financial services areas, Chandra said.

The company, based in the southern city of Madras, made three acquisitions in calendar 2000. And in March, Mascon acquired listed software products firm Maars Software International Ltd in an all-share deal then valued at Rs 367.2 million.

Mascon shares on Monday ended unchanged at Rs 74 on the Bombay Stock Exchange.

At that price, the shares were 21.11 per cent above their 2001 low of Rs 61.10 hit on April 16, but 82 per cent below their high of Rs 414 on January 19.

Over the same respective periods, the benchmark Sensex is up 15.26 per cent and down 15.06 per cent.

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