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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8131)	10/11/1999 10:42:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Silverline scouting for overseas buys silverline.com BOMBAY, Oct 11 (Reuters) - Indian software company Silverline Industries Ltd is scouting for overseas acquisitions of financial services software and e-commerce content developing firms, a senior official said on Monday. ``The proposed issue of American Depositary Receipts (ADRs) is to fund acquisitions for our growth. We are looking at companies in in the U.S. and U.K. in financial services areas and the front-end of e-commerce applications,' Silverline executive director Kumar Subramanian told a news conference. The firm's board last week approved a $75 million ADR issue which, Subramanian said, would be launched by the first quarter of next year. The company expected its 1999/2000 (April-March) net profit at about 780 million rupees on revenue of about three billion, he said. ``The earnings per share (EPS) will rise to about 12 rupees on an equity base of 645 million rupees compared to EPS of 10 rupees on an equity base of about 380 million rupees,' Subramanian said. These projections were based on figures yielded after a planned acquisition of group firm, the U.S.-based Silverline Technologies, he said. Silverline Technologies is owned 100 percent by Silverline Holdings Corp of U.S., which is also the parent firm of Silverline Industries. Silverline Industries will pay $46.25 million for the acquisition, which will be funded through a preferential allotment of 4.5 million shares at 445 rupees each to Silverline Holdings Corp. The proposals will be placed before shareholders for approval at an extraordinary general meeting on November 5. Subramanian said Silverline Industries's staff strength will rise to 1,350 by March 2000 from about 950-975 now. This excludes the 320 people working with Silverline Technologies. Silverline Industries last week announced a net profit of 324 million rupees for the six months ended September 30, 1999 compared to 164.39 million in the year-ago period while sales and services grew to 871.67 million from 466.53 million. Subramanian said new technology areas like e-commerce and Internet constituted 22 percent of total revenues in the period compared to virtually nothing in the first half of last year. Revenues from Y2K related activities fell to five percent of total revenues during the six months from 10 percent in the year-ago period, he added.