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Sonata EGM okays 10 for 1 stock split

Our Bureau

BANGALORE, Sept. 6

THE shareholders of Sonata Software Ltd have approved the 10-for-1 split of its equity shares, that is, each share, which has a face value of Rs. 10, shall be split into 10 shares with a face value of Re. 1 each. The board of directors of the company has fixed October 9, 2000 as the record date for the stock split.

The EGM was held in Mumbai today.

Speaking on the approval, Mr. B. Ramaswamy, President and Managing Director, said, ``the stock split substantiates Sonata's commitment to enhance the stakeholder value. With this stock split, the shareholders will have better liquidity for their shares'' .

As of date, Sonata has 10 million equity shares of face value Rs. 10 each outstanding. On the approval of the stock split by the shareholders, the outstanding equity shares of the company have increased to 100 million equity shares of face value Re. 1 ea ch, said a company press release.

In another resolution, the shareholders also approved the hiving off of the Indian operations of the company into a wholly-owned subsidiary named Sonata Information Technology Ltd (SITL).

Elaborating on the rationale behind this step, Mr. Ramaswamy said that ``both international operations and Indian operations of Sonata have grown to a sizable businesses in themselves. It was felt that splitting into two companies will facilitate the nec essary focus for nurturing and growing these businesses''.

``By retaining the structure of SITL, being a wholly-owned subsidiary of Sonata, the two companies can continue to exploit the synergy that exists between the two businesses,'' Mr. Ramaswamy said. The spin-off was approved with effect from July 1.