The Hindu Business Line : AxSys Health plans preferential offer

AXSYS HealthTech Ltd (AHL), the Hyderabad-based developer of clinical information and telemedicine systems, proposes to make a preferential offer to foreign funds for raising funds required to market the enterprise-wide solutions it has developed for the healthcare industry.

The company has developed Excelicare, an enterprise-wide solution that addresses the complete spectrum of healthcare from the management of patients at home through primary care to acute tertiary-care hospitals.

According to the AHL Director, Dr Ramesh Ramayya, "The company is in the process of marketing the product to various medical organisations in the UK and other countries. For implementing the project as well as for meeting the expenditure related to marketing and other requirements, the company needs sizeable funds."

The AHL board has approved a resolution to offer 16 lakh equity shares of a face value of Rs 10 each at a premium of Rs 50 per share and also issue 9.25 lakh warrants of face value of Rs 10 each at a premium of Rs 50 per warrant in favour of four funds, two Hong Kong-based firms and one each based at New York and Mumbai. These investors are Lloyd George Management (Hong Kong) Ltd, Asian Smaller Companies Fund Ltd, Aeneas Portfolio Company LP and Reliance Capital Ltd, respectively.

Lloyd George, Asian Smaller and Aeneas Portfolio would be allotted four lakh shares each while Reliance Capital would be allotted four lakh shares as well as 9.25 lakh warrants. This enables the first three funds to acquire 4.52 per cent equity each in AHL's post-preferential offer equity and helps Reliance Capital acquire 14.96 per cent equity.

Following the proposed preferential offer, the equity holding of AHL promoters would come down to 37 per cent on the expanded equity base of Rs 8.85 crore from the existing 51.76 per cent on the current equity of Rs 6.33 crore, while the holding of non-promoters would increase to 63 per cent from the current level of 48.24 per cent.

According to Dr Ramayya, there would be no change in the composition of the present board of directors and management control would continue to remain with the existing management even in the post-preferential-issue era.

The AHL board has decided to convene an extraordinary general meeting of its shareholders on April 23 to seek their consent for the proposed preferential offer to funds.

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