Date:25/11/2004 URL: http://www.thehindubusinessline.com/2004/11/25/stories/2004112502010700.htm

Back Purchase of bank's units — HCL Tech board okays pref issue to Deutsche Bank

Our Bureau

New Delhi , Nov. 24

HCL Technologies Ltd on Wednesday said its board of directors has decided to issue 1.93 crore equity shares to Deutsche Bank.

The shares, which have a par value of Rs 2 per share, will be issued at Rs 361 each.

HCL's proposed issue is as per the terms of the company's joint venture agreement with Deutsche Bank in September 2001, when it acquired a 51 per cent stake in Deutsche Bank's Singapore-based unit DSI Financial Solutions Pte Ltd.

At that time, HCL had agreed to acquire Deutsche Bank's remaining 49 per cent stake in DSI Financial at the end of three years by issuing its shares to Deutsche Bank.

Following the completion of the preferential issue to Deutsche Bank, which is subject to regulatory approvals, DSI Financial and its software unit DSL Software Ltd will become units of HCL, said a company release.

The shares that HCL agreed to issue Deutsche Bank constitute around 6.1 per cent of its expanded share capital. The issue price is at a slight discount to HCL's closing price of Rs 368 on the Bombay Stock Exchange on Wednesday.

An extraordinary general meeting of the shareholders is being scheduled on December 21 for this purpose.

"Over the past three years, Deutsche Bank and HCL have collaborated successfully to grow the size of DSL.

Located in Bangalore, DSL has strengthened HCL's presence and expertise in the banking and financial services domain," said a press statement.