Chennai-based software solutions provider Ramco Systems Ltd, has received its board’s approval to raise up to Rs 500 crore ($83.3 million) through issue of equity shares, the company said in a stock market disclosure.
The board of directors of the company at its meeting has considered and approved raising of funds worth up to Rs 500 crore through public offering or qualified institutional placements (QIPs) or private placement or a combination thereof, by way of issuing equity shares or global depository receipts (GDRs) or American depository receipts (ADRs) or foreign currency convertible bonds (FCCBs) or convertible securities or warrants which are convertible into equity shares of the company or any combination of securities, it said.
The company has not yet fixed the pricing of the proposed issue.
This would be the second back-to-back fundraising for the firm. It recently completed a rights issue which scooped up around Rs 123 crore.
Shares of Ramco Systems were trading at Rs 309.85 each, up 5 per cent on BSE in a weak Mumbai market on Monday at 11.36 AM.
Ramco Systems, a part of the $1 billion Ramco Group, is a software company focused on consulting, products and managed services business. Started as an R&D division of Ramco Industries Ltd in 1992, Ramco Systems was later established as an independent company in 1999.
The firm is headquartered in Chennai and has 20 offices spread across India, APAC, the US, Canada, Europe, Middle East and Africa. Since the launch of its cloud-based HR & talent management software, Ramco has added an average of one customer a week, including Fortune 100 and global multinational brands.
Recently Ramco signed a deal with Norske Skogindustrier ASA for Cloud enterprise resource planning (ERP) integrated with asset management and financials for its ANZ region for an undisclosed amount.
(Edited by Joby Puthuparampil Johnson)