InfoTech Enterprises will allot 12 lakh equity shares and 3 lakh convertible warrants to Carrier International Mauritius, a group company of the US-based $38 billion United Technologies Corporation, acting through its Pratt & Whitney division. InfoTech had entered into this deal in December to raise about Rs 48 crore.
The company will allot shares to Carrier on February 11. As per the terms decided by the board, the equity shares will be issued at $6 per share of face value of Rs 10 each and the warrants will be issued at $10 a warrant. Each warrant will be converted into one equity share at the end of 18 months after the allotment date. Post warrant conversion, the weighted average price for each share works out to Rs 330.
The preferential issue proceeds will be utilised by the company to finance its acquisition plans, working capital requirements and capital investment. Sources said the company has identified two-three target companies in US for acquisition purpose and currently negotiating with them. The company has acquired two companies in Europe in the first quarter of the current year, one in UK and the other in Germany.
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Post preferential issue, the InfoTech's equity will increase to Rs 7.3 crore from the exiting Rs 6.12 crore and the US company will hold about 18.4 per cent stake in the equity.
Pratt & Whitney has shown keen interest in making a strategic investment in Infotech after its long association with the company, a company official told Business Standard. Infotech currently provides engineering services such as air craft engine parts design, analysis, CAD related software and e-business services to Pratt & Whitney with about 20 per cent contribution to the total revenues.