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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (7318)	3/8/2000 8:42:00 PM
From: SKIP PAUL	Respond to of 13582

Qualcomm to invest in Shyam Tele shyamtelecom.com Rajas Kelkar in Mumbai (Business Standard) Qualcomm and the US-based Cincom Systems are expected to invest $ 10 million each in Shyam Telecom, the Delhi-based telecom equipment manufacturer. Qualcomm is a leading player in the CDMA technology while Cincom Systems is into telecom software. The investment will be through a subscription for the zero coupon bonds which will be converted into equity. According to Alok Tandon, managing director of the company, the board will take up the issue today. The company has already called for an extraordinary general meeting (EGM) on April 6, 2000 to ratify the preferential allotment of shares through the bond issue. Tandon said modalities are being worked out for structuring the deal. "Qualcomm is the biggest CDMA technology player. More than the financial investment, the technology is crucial. The proposal will be put up for the board approval and later taken up in the EGM," Tandon told Business Standard. Shyam Telecom is planning to boost its research and development through these deals. "We are basically a research oriented company. Deals with these two companies are expected to boost our R&D effort. We are setting up a software development centre in India with Cincom Software. They will market their products in India through us and we will do the same in US," he added. Meanwhile, the Shyam Telecom stock touched a 52-week high on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). It closed at the upper-end of the circuit filter at Rs 913.90 on the BSE as well as Rs 935.90 on the NSE. The company placed 15 per cent of its equity with leading mutual funds like Alliance Capital management, the Oppenheimer Fund, Jardine Fleming Asset Management and SBI Mutual Fund. It was completed in middle of February. This was at a price of Rs 160. The stock has spiralled since then. The company is engaged in the manufacture of telecom equipment, especially in the wireless arena. The company has also made a foray into other related fields such as fibre in local loop, spread spectrum radios for high speed Internet access, remote sensing metering systems (SCADA), and remote management of power and alarm system. The company's long term vision is to be in core areas of telecom and power distribution. The plans for power distribution business are targeted at providing solutions for power distributors.