PVP Enterprises, promoted by non-resident Indian Prasad V Potluri, and Chennai-based software training institute SSI India (SSI), have announced that PVP will take a controlling stake of 51% worth Rs 900-1,200 crore in SSI.
In the first phase of the process, which will culminate in transfer of management control to PVP and merger of the two groups, PVP has acquired a 13.5% (78,14,315 shares) stakeholding in SSI for Rs 208 per share.
In the second phase, PVP will acquire 2,17,06,432 shares, constituting 37.5% of the share capital of SSI. Post-acquisition, PVP will have 51% (2,95,20,747 shares) in SSI, Kalpathi S Suresh, chairman & chief executive officer, SSI, said.
The company is in touch with the new management group, Suresh said, adding it has no plans to delist from the Bombay Stock Exchange for now.
While principal promoter of SSI India, Kalpathi S. Aghoram’s stake will drop to 10.01% from 23.51%, the overall promoter stake in SSI will be 20% as against 70.8% earlier.
For the year-ended March 31, 2006, SSI reported a profit after tax of Rs 11 crore - up from a net loss of Rs 2.68 crore in the corresponding period of 2005.
The company has plans to develop a number of residential and commercial townships in and around Chennai. Primary among them will be a 70-acre residential township at Perambur, which, when completed in the next five years, will have 4,000 apartments spread over 6 million square feet.
The stock was locked at its 5% upper limit at Rs 165.55 - a gain of Rs 7.85 today.
