The promoters of Bangalore-based Kavveri Telecom are increasing their stake to 39 per cent from the present holding of about 15 per cent through an open offer post preferential allotment of shares. The promoters will fork out Rs 45.2 crore on buying 4 million shares at Rs 113 per share.
The promoters are also planning to hike their stake further by another 4 per cent as and when they exercise the 10 lakh warrants which they are subscribing to. Shivkumar Reddy, MD, Kavveri Telecom said that there are lot of interest from strategic players to pick up stake in the company and they will open to such transactions if they foresee value in offloading stake.
Kavveri has been building its business and recently announced it has been selected a vendor by a global equipment manufacturer, for its radio frequency products. Kavveri has been working with companies like Alcatel-Lucent, Ericson, Huawei, ZTE, Reliance Communications, Airtel, Vodafone, Idea, Aircel, Tata Indicom.
The stock gained close to an percent on a bullish market and closed at Rs 124.80 per share on the National Stock Exchange.
