Applabs, Esolutions to be merged with Visual

The board of directors of Visualsoft Technologies, which met today, has decided to amalgamate Applabs Technologies and Esolutions with the company on stock-swap basis.

According to a release issued by Visualsoft Technologies to the BSE today, the board approved a proposal to issue 17 equity shares of Rs 10 each of the company to the equity shareholders of Applabs for every six shares held by them.

Visualsoft Technologies would issue 0.4206339 shares of Rs 10 each to the preference shareholders of Applabs for every one preference share held by them.

The board of Visualsoft Technologies also resolved to issue one equity share of Rs 10 each to the shareholders of Esolutions for every six shares held by them.

Consequent to the above, the paid up capital of the merged entity would be 3,32,93,888 equity shares of Rs 10 each amounting to Rs 33.29 crore, the release added.

The company is now targeting Rs 400 crore revenue for the financial year ending March 31, 2007 with an approximate profit of Rs 70 crore, the release added.