The promoters of the DSQ Software have hammered out an agreement with Calcutta-based Power Flow to bail out small investors trapped in a share transfer controversy involving about 12 lakh shares.
In the process, the firm's promoters have decided to bear an unspecified financial loss in a problem that does not concern them, mainly to rescue small investors. Subsequent to this agreement, the interim injunction obtained by Power Flow staying the transfer of these 12 lakh shares sold by Hakim Auto has now been withdrawn.
The controversy started a few months ago when Power Flow had pledged these shares with Mumbai-based Hakim Auto. However, as prices of the DSQ Software scrip shot up, the latter sold the shares in the open market before Power Flow could redeem them.
By the time Power Flow could obtain a stay from the court on the sale of the 12 lakh shares, they were sold in the market. These shares later became bad deliveries, with the court issuing an order staying their transfer. "We would like to inform all investors that these 12 lakh shares, which were considered bad deliveries till recently, have now become good,'' said managing director and main promoter of DSQ Software, Dinesh Dalmia.
"We have also set up a special task force with our registrars to ensure that all transfers are completed as quickly as possible,'' he added. Under the settlement hammered out with Power Flow, the DSQ promoters have `loaned' some shares out of their holding as security until Power Flow resolves its problems with Hakim Auto.
The promoters have also promised Power Flow a `reasonable financial settlement' if their loss to Hakim Auto is not made good. The promoters of DSQ Software have gone out of their way to persuade Power Flow to withdraw the stay on the transfer mainly to bail out small investors, Dinesh Dalmia said.
Another controversy regarding the transfer of about seven lakh DSQ Software shares from UTI Bank to IL&FS (Infrastructure Leasing & Financial Services) and six other investors, too, has been resolved, with the company effecting the transfer, Dalmia added. These shares, initially pledged by DSQ Software's promoters with UTI Bank, were sold by the latter to seven investors including IL&FS. Dinesh Dalmia, however, declined to comment on the tussle with co-promoter Commonwealth Development Corporation (CDC) on the grounds that the issue was sub-judice.
