 "Prashant Desai")
63 Moons Technologies, formerly Financial Technologies (India), has set up an investment committee and has a new policy to protect the company’s wealth. The company, which is sitting on around Rs 2,000 crore cash after selling its stakes in various firms, said it was looking at debt instruments to boost treasury income.
Addressing the company’s shareholders on Tuesday, Prashant Desai, MD and CEO, 63 Moons Technologies, said the priority was to protect the value and wealth of the company. After the alleged payment default at one of its subsidiaries three years ago, 63 Moons Technologies was forced to sell some of its arms. As a result, the company is sitting on Rs 1,900-2,000 crore of cash.
“It has become a business for the company almost,” said Desai, adding that to protect this money 63 Moons Technologies needed to spend Rs 40-45 crore every year on legal fees.
Desai said a clear policy had been laid out by the investment committee appointed by the board that did not allow 63 Moons Technologies to invest in any equity or equity-related investments.
Desai said once the legal clouds lifted 63 Moons Technologies would commercialise its intellectual property and would look beyond finance-led verticals to become a technology-led enterprise.
Shareholders would see the impact of the new initiatives in the next couple of years, he added.
Desai said 63 Moons Technologies had Rs 500 crore debt and the company had sought approval from the Reserve Bank of India to repay it. But it is yet to receive a nod to repay the external commercial borrowings. The company hopes to bring down its debt to Rs 100 crore as some of its loans are coming up for repayment.
