Spanco To Raise Rs 50 Crore
Summary
Spanco Ltd has announced that its plans to raise Rs 50 crore through issue of of fresh securities. It plans to raise another Rs 20 crore through a rights issue to existing shareholders.The company will now seek the permission of shareholders at an Extra-ordinary meeting on how to proceed with the issue.Spanco is involved in two lines of businesses - telecom integration and business process outsourcing (BPO). The BPO services focuses on international call center operations.Spanco raised Rs 122 crore from private equity firms ChrysCapital and UTI Ventures in early 2007. Another PE investor in the company is Argonaut Ventures, which has a little less than 5% stake.The private equity firms bought their stake in March 2007 at a price of Rs 215 per share. The similar is true for many of the PIPE (private investments in public equity) deals done during the bull markets in 2007, when valuations were peaking.The Spanco stock touched a low of Rs 15.25 last month, before the bull rally started.