UTI Ventures to invest $3 million in Scandent
By siliconindia   |   Tuesday, 01 June 2004, 19:30 IST
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CHENNAI: UTI Ventures is investing $3 million in the Ramesh Vangal-promoted Scandent, which will shortly be merged with the IT consulting division of SSI. This investment will help UTI Ventures to get the shares of the merged entity of the IT services businesses of SSI and Scandent Group, which will be listed, reports Economic Times. Unveiling this to his company shareholders at a court convened meeting in Chennai on Monday, Kalpathi S Suresh, chairman, SSI, said that Scandent would have to issue fresh shares to UTI Ventures that would lead to an increase in its share capital. “Hence, we have made a modification in the merger scheme in regard to the increase in the share capital of Scandent,” he said. Later, the SSI shareholders passed the modification proposal and the modified merger scheme through voting in the presence of a court appointed chairman. It is learnt that UTI Ventures has committed its investment in Scandent (which is a privately-held company) based on a valuation of about $80 million-$100 million for the merged entity of SSI’s IT business and Scandent. The merged entity is expected to be listed in the next couple of months on BSE and NSE. By virtue of this investment in Scandent, UTI ventures will be allotted one share of the merged entity for every share it holds in Scandent. It is learnt that UTI Ventures will be allotted about 10.52 lakh shares in Scandent. “The shareholders will be benefited by the additional funds flowing into Scandent, which will soon be merged with SSI’s IT arm,” said Suresh.

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