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Our Bureau

Following the merger of AppLabs Technologies and eSolutions, VisualSoft has decided to realign its business on two key areas of product development services and software testing services while eliminating low profitability businesses.

Hyderabad , Dec. 21

VISUALSOFT Technologies Ltd has restructured its operations following the merger of AppLabs Technologies and eSolutions.

It has charted out share swap ratio between the merged combined entity.The Chief Financial Officer of VisualSoft Technologies, Mr V. Krishnan, told Business Line that the entire process had been worked out with an equity dilution of 66 per cent. Consequently, the merged paid-up capital would be revised to 3.32 crore equity shares of Rs 10 each, aggregating to Rs 33.29 crore from the earlier Rs 19.97 crore.

The board of directors today approved the scheme of amalgamation based on the findings of a valuation report. VisualSoft shall issue 17 equity shares of Rs 10 each to the equity shareholders of AppLabs Technologies for every 6 shares held by them in the company along with 0.42 equity shares of Rs 10 each to the preference shareholders for every one preference share held.It will issue one equity share of Rs 10 each to the shareholders of eSolutions Private Ltd for every 6 shares held by them in the company.

VisualSoft has decided to realign its business on two key areas of product development services and software testing services, while eliminating low profitability businesses.

The combined entity is expected to achieve a turnover of Rs 240 crore and profit of Rs 32 crore for the financial year ending March 31, 2006. It expects Rs 400 crore revenue and profit of Rs 70 crore for the next fiscal.

While the product development would fetch Rs 180 crore, software testing services would provide Rs 220 croreAs against the previous close of Rs 230.85, VisualSoft shares ended today at Rs 254.95 on the NSE.

More Stories on : Mergers & Acquisitions

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