Valuemart Info raises Rs.6 Crores through Preferential Issue

Valuemart Info Technologies Ltd on September 10, 2007 has announced that it has raised Rs 6 Crores through a preferential issue of Equity Shares to Strategic Investors. The Company issued 1,00,00,000 Equity Shares of Rs 2/- each at a premium of Rs 4/- per share.

Post Issue the paid up Capital of Valuemart has increased to Rs 8.01 Crores and the reserves have increased to Rs 5.50 Crores. The net worth of the Company has increased to Rs 13.26 Crores and the Book Value per share to Rs 3.31.

Announcing this, Mr. C K Vasudevan, Managing Director, of the Company said, "The funds raised will be utilized to upgrade existing facilities, acquire new business, make fresh investments in hardware and software, and meet working capital requirements. These investments shall contribute substantially in increasing the revenues for the Company".

The Company posted very good results for the financial year ended March 31, 2007 with a 193% growth in turnover to Rs 5.65 Crores from Rs 1.92 Crores in the previous year. The Net profit dipped slightly to Rs 0.70 Crores from Rs 0.93 Crores in the previous year. This was due to a one time provision of Rs 1.12 Crores made to write off intangible assets.

The Company is an IT and BPO solutions Company with offerings in ERP and new generation patent pending technologies such as BPM. Its key competencies are in the Banking, Financial Services, Insurance, Legal and Manufacturing Verticals.

The equity shares of the Company are listed at Mumbai (BSE) and Bangalore (BgSE).

The stock was trading at Rs.66.30, down by Rs.5.80 or 19.83%. The stock hit an intraday high of Rs.5.80 and low of Rs.4.79. The total traded quantity was 121209 compared to 2 week average of 32546.

Source : Equity Bulls

Keywords