SQL Star International, a city-based information technology firm, will issue shares to its shareholders on a rights basis to finance its working capital requirements and repayment of unsecured loans.
The company will offer 31,20,000 equity shares at par aggregating Rs 3.12 crore to the existing shareholders in the ratio of three shares for every 10 shares held on the record date of January 21.
According to Ashok Agarwal, managing director of the company, SQL plans to repay an unsecured loan of Rs 67.5 lakh and the working capital requirements amount to Rs 2.28 crore.
The company's overall strategy in the next three years is to consolidate its operations, leveraging upon its core competencies in the areas of software services.
"The primary focus will be to leverage our domain expertise in insurance and financial services segment to penetrate further into the US and European markets," Agarwal said.
SQL currently has a staff strength of 400 professionals with 190 in software development and 210 in educational activities.
For the nine months ended September, the company posted a net profit of Rs 11 lakh on a total income of Rs 36.59 crore (Its audited results for the quarter ended December are yet to be announced).
