Megasofts merger with Xius okayed

The board of the Chennai-based Megasoft Limited today approved the merger proposal with i-Labs group promoted Xius India, based on the valuation report submitted by Pricewaterhouse Coopers (PwC), which recommended a swap ratio of 5 equity shares of Rs 10 each of the company for every 2 equity shares of Rs 10 each of Xius.

Based on the swap ratio, 1,03,30,625 equity shares of Megasoft would be issued against 41,32,250 fully paid up equity shares of Xius India consequent to the amalgamation, subject to necessary approvals.

Megasoft, a CMM Level-4 company, has a team strength of over 500 associates in its Chennai, US and Hyderabad development centers put together.

The company earns over 60 per cent of its revenues from US, and its US subsidiary has clocked revenues of Rs 80 crore last year. It posted a nominal profit of Rs 13 lakh on a total income Rs 13.5 crore for the half year ended September.

Its current paid-up capital stands at Rs 15.11 crore, of which non-promoters' holding is at about 49 per cent.