Date:14/01/2005 URL: http://www.thehindubusinessline.com/2005/01/14/stories/2005011401720500.htm

Back Megasoft to issue shares to I-Labs

Our Bureau

Chennai , Jan. 13

MEGASOFT Ltd plans to issue eight lakh shares on a preferential basis to I-Labs Venture Capital Fund. These shares can be converted into 16 lakh equity shares.

On conversion, I-Labs' stake in Megasoft will go up from 8.84 per cent to 13.78 per cent, according to a company official. Megasoft will seek its shareholders' approval at an extraordinary general meeting to be held on February 3.

The software firm also plans to issue 50,000 preference shares to Mr Anish Mathew and another 50,000 shares to Mr Rajagopalan Shyamsunder — both non-promoters. Megasoft will also issue up to seven lakh equity warrants to Mr Ravindra Sannareddy (one of the promoters) of Rs 50 each, with each warrant being converted within 18 months into one equity share of Rs 10 each at a premium of Rs 40 per share on a private placement basis.

The company plans to increase its authorised share capital of to Rs 40 crore from Rs 30 crore.