The Rs 3,000-crore Yash Birla group has ventured into the IT sector by becoming the single largest shareholder in Mumbai-based software services firm Melstar Information Technologies.
According to the Bombay Stock Exchange Web site, the group now has a 49.59 per cent stake in Melstar by first buying out a major chunk of the promoters stake and then going in for an open offer.
Going by details provided by Melstar to the BSE, the cost of the acquisition worked out to roughly Rs 10.6 crore though the company refused to comment on the actual numbers.
“The Melstar acquisition fits into the group’s ongoing thrust on growth and exploring new age sectors such as education, healthcare and IT. We see a strategic fit between the Yash Birla Group and Melstar vis-À-vis the directions that the group has set for itself,” Mr Yash Birla, Chairman, said in a statement.
Established in 1986, Melstar provides application management services for the banking, insurance, and government sectors. For the quarter ended December 31, 2008, it reported revenues of Rs 5.33 crore.
Board reconstituted
Subsequent to this acquisition, the board of directors of Melstar has been reconstituted.
Mr Yash Birla has been appointed as Chairman and Mr. S.M. Arora as Managing Director of Melstar. Mr PVR Murthy and Mr Anoj Menon have been made Directors while Mr Richard D’Souza has been appointed Chief Executive Officer.
Source: The Hindu Businessline