HCL board okays Rs 700 cr issue to Deutsche Bank

HCL Technologies Ltd has informed BSE that its board of directors on Wednesday has approved a preferential issue of 19,358,989 equity shares of Rs 2 each fully paid up at a price of Rs 361 per share to Deutsche Bank, aggregating around Rs 700 crore.

The company said its board of directors has already approved the allotment, which is subject to the necessary regulatory and other approvals.

The company will also be holding an EGM of its shareholders on December 21, 2004 to seek their approval.

The company said the proposed issue is in terms of the JV agreement of September 2001 with the foreign bank and would constitute the purchase consideration for acquiring of balance 49 per cent stake in DSI Financial Solutions Pte Ltd (DSI), Singapore, currently held by the bank. DSI and DSL Software Ltd will become wholly-owned subsidiaries of HCL.