NIIT planning seperate software solutions entity
By siliconindia   |   Monday, 15 March 2004, 20:30 IST
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NEW DELHI: NIIT has convened an extra-ordinary general meeting (EGM) of shareholders on March 24 to get their approval for spinning off its software business and restructuring of the equity. The over Rs 1,000 crore IT education major has proposed spinning of company's software solutions business into a separate entity to be called NIIT Technologies Ltd (NTL), Sanjiv Kataria, executive vice president of NIIT said adding that consequent upon restructuring, the company's equity base would increase to Rs 57 crore from Rs 38 crore now. As per the scheme, 75 per cent of the equity share capital of NTL shall be held by the shareholders of NIIT Ltd, while the balance 25 per cent shall be held by the demerged NIIT Ltd through a wholly-owned subsidiary. "The capital and reserves allocation has been proposed in a manner that in lieu of every 100 shares of Rs 10 each held by shareholders of NIIT Ltd, they shall receive 50 shares of demerged NIIT Ltd and 75 shares of new entity NTL, both of face value of Rs 10 each," Kataria told PTI. Kataria, however, said that restructuring would be subject to necessary clearance like from High Court and market regulator SEBI, if necessary.

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