Stock Report

GSS Infotech Ltd approves fund raising, acquisition proposal



Posted On : 2021-12-04 20:02:08( TIMEZONE : IST )

The Board of directors of GSS Infotech Ltd have approved the issuance of 28,00,000 convertible warrants to Promoters and Non Promoters ('Proposed Warrant Holders') at a Price of Rs. 107/- per convertible warrants with the right to warrant holder to apply for and be allotted 1 (One) Equity Share of the face value of Rs. 10/- each of the Company at a premium of Rs. 97/- per convertible warrant within a period of 18 (Eighteen) months from the date of allotment of the warrants, aggregating up to Rs. 29,96,00,000/- (Rupees Twenty Nine Crores Ninety Six Lacs Only) on Preferential basis.

The Board has identified M/s. Polimeraas Limited as a potential target which is valued around Rs. 250 crores as per the Valuation Certificate dated 02-12-2021 placed before the Board has approved to invest in Polimeraas Ltd. a company engaged in the business of trading in vegetables, fruits & general home consumables by subscribing to 10,00,000 equity shares of Rs. 10 each of Polimeraas Limited at a price of Rs. 250 per share, for a consideration of Rs. 25 crores.

The Draft Transaction Documents have been placed before the Board and the Board had approved the Proposed Transaction and authorised Mr. Bhargav Marepally, Managing Director to negotiate, enter into all agreements deeds, amendments there to, and execute Definitive Agreements and the proposal of merging Polimeraas Agros LLP (Which will be converted into Polimeraas Agros Private Limited) with GSS , subject to consent of shareholders of the Company, stock exchanges and other regulatory authorities.

Post conversion of Polimeraas Agros LLP to Polimeraas Agros Pvt Ltd and merger of Polimeraas Agros Pvt Ltd with GSS, the company shall allot 92,20,000 equity shares to the Shareholders of Polimeraas Agros Pvt Ltd. GSS will also issue convertible securities with a call option (at the instance of GSS) to the shareholders of Polimeraas Agro Pvt, Ltd for the balance of the consideration as per the valuation report which are convertible / redeemable after 12 months extendable upto 18 months.

The Board considered the proposal to explore various options to raise funds not exceeding Rs. 500 Crores (Rupees Five Hundred crores) by way of Follow-on Public Issue, or any other methods on private placement basis, through one or more permissible modes or issue of securities in any combination thereof etc, subject to approval by the shareholders of the Company.

The Board considered the proposal to explore various options to raise funds not exceeding Rs.500 Crores (Rupees Five Hundred Crores) by way of placement of shares to Qualified Institutional Buyers through Qualified Institutions Placement (QIP) subject to approval by the shareholders of the Company.

Shares of GSS Infotech Limited was last trading in BSE at Rs. 121.00 as compared to the previous close of Rs. 115.25. The total number of shares traded during the day was 6544 in over 30 trades.

The stock hit an intraday high of Rs. 121.00 and intraday low of 121.00. The net turnover during the day was Rs. 791824.00.

Source : Equity Bulls

Keywords

GSSInfotechLimited INE871H01011 Acquisition FundRaising ConvertibleSecurities Warrants QIP FPO