The board of outsourcing firm Spanco Ltd has proposed to raise Rs 35 crore via a preferential issue of 10 million shares to promoters and investors at Rs 35 a share. The issue, which would increase the total equity shares of company by almost 50%, will be subscribed by private equity investors including ChrysCapital, and some foreign institutional investors (FIIs).
Spanco will seek shareholders nod for the same at its EGM on May 23. Spanco is involved in two lines of businesses – telecom integration and business process outsourcing (BPO), and is backed by PE funds like UTI Ventures and ChrysCapital.
PE major ChrysCapital, which holds stake in Spanco through its subsidiary Monet Ltd, is investing Rs 5.2 crore in the issue, maintaining its 14.92% stake. If it increases the stake by more than 15%, it will have to go for an automatic open offer. The fund bought the stake in 2007 at Rs 215 per share, and the present issue would bring down its average stock acquisition price to around Rs 150-160. Another PE firm picking up stake is Athena India Opportunities.
FIIs picking up stake through the issue are Elara India Opportunities, Ares Diversified and Sophia Growth. Promoters Kapil Puri and Kavita Puri are also together picking up around 3.5 million shares in the issue.
The fresh issue comes as Spanco BPO is reportedly looking to acquire joint venture partner Spice Group’s stake in Bharat BPO. Last year Spanco and Spice Group had announced merger of their arms, a deal which later didn’t materialise. Bharat BPO, a 50:50 JV, was formed earlier and has eight centers employing around 1,000-1,200 employees.