HDFC, UTI, Tata Fin. pick up stake in MCS Software

By Our Staff Correspondent

MUMBAI, MAY 10. The Housing Development Finance Corporation (HDFC), Unit Trust of India (UTI) and Tata Finance have collectively acquired a 12 per cent stake in the first round of financing in MCS Software Solutions for Rs. 12 crores. The deal takes the valuation of the company to Rs. 100 crores.

HDFC and UTI have acquired a 5 per cent stake each while Tata Finance has picked up 2 per cent. MCS Software Solutions is a wholly-owned subsidiary of the U.S.-based Object Resources (ORI), a Rs. 70 crore software services firm promoted by Mr. Suresh Ram. Mr. Ram has also founded Power-Fax and Power Tel Communication. Power Tel Communication is engaged in developing wireless data products and applications. The company has received some firm commitments from investors and is now negotiating the second round of investment.

MCS Software develops solutions for mutual funds and corporates. The company has benefited from the domain knowledge of its sister company MCS Share Registry that manages the investor accounts of more than 20 schemes and six mutual funds.

The company has developed a product for the back-end of the mutual fund industry called Clarient Investor which is based on the recent mark-up language XML and is capable of handling the specific needs such as redemption, switching, sales and repurchase of mutual fund schemes.

The software is also capable of providing interfaces with the depository participants, banks, stock exchanges, brokers, individual investors and corporate investors. MCS has sourced the technology for this product from its parent company ORI.

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Section  : Business
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