Silverline comeback: To list on BSE today

Silverline Technologies, one of the biggest casualties of the dotcom bust of 2001 from among the Indian stock market-listed companies, is getting set for a second coming when it gets its stocks relisted on the Bombay Stock Exchange (BSE) tomorrow.

The Mumbai-headquartered company, which also was the first New York Stock Exchange (NYSE)-listed Indian IT services company "" Satyam Computers and Wipro got listed on the US exchange only later "" when it raised $100 million from US investors in 2000, had hit rock bottom in 2003-04.

All the six dotcom companies it acquired using the American Depository Receipts (ADRs) funds went bust, its networth saw complete depletion, it was forced to close all the US and Indian operations and its shares were delisted from BSE due to non-reporting of quarterly numbers for six quarters running.

As if this was not enough, shares of Silverline Technologies were also one of the favourite of rogue trader Ketan Parekh.

"In none of the Sebi (Securities and Exchange Board of India) investigation findings (on Ketan Parekh scam), Silverline Technology's name is mentioned. We were in no way involved in stock market manipulation. The company went bust due to our misjudgment of the dotcom boom. Over 650 public companies in the US having a market capitalisation of $1 trillion went belly-up in the dotcom bust," points out Ravi Subramanian, chairman of Silverline Technologies.

Tomorrow's relisting on BSE comes after a series of restructuring exercises the company engaged itself in the last couple of years. The company, to begin with, sold off its Thane real estate to a Florida-based developer.

The money was used to go for a one-time settlement with 10 banks, including two foreign banks Americorp and Development Bank of Singapore.

The company also reduced its equity base from 30 crore shares to 3 crore, meaning an investor holding 100 shares would receive 10 shares.

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BACK FROM THE BRINK

The Mumbai-headquartered company, which also was the first New York Stock Exchange (NYSE)-listed Indian IT services company when it raised $100 million from US investors in 2000, had hit rock bottom in 2003-04

All the six dotcom companies it acquired using the American Depository Receipts (ADRs) funds went bust