Color Chips to offload 10% stake to Cyber Toons

Color Chips India Limited, a Hyderabad-based integrated design solutions company, is working on a strategic business relationship with Chennai-based Cyber Toons Private Limited.

Based on the relationship, Color Chips will allot 30 lakh shares to Cyber Toons, amounting to about 10 per cent stake.

"Both the companies will jointly be developing multimedia CDs for educational purposes. We are considering allotting 30 lakh shares to them and may subsequently take some stake in their company as well," Color Chips managing director Sudhish Rambhotla told Business Standard.

An extraordinary general meeting of the members of Color Chips will be held on August 21, 2006, to consider issue of these shares on a preferential basis. Allotment of shares to Color Chips Animation Park Ltd (7 lakh equity shares) will also be considered. The shares will be allotted at a price of not less than Rs 10 each.

Meanwhile, the company is also considering raising funds of up to $10 million through the issue of instruments like global depository receipts or American depository receipts.