GSS Infotech Shares Reach Top Channel After Board Approves Fundraising and Acquisition Proposal

The board of directors of GSS Infotech Limited on Saturday approved an investment limit of no more than Rs500cr that the company can make in Indian entities and / or foreign entities.

The Board of Directors approved the issuance of 28,000,000 convertible warrants to promoters and non-promoters (“proposed warrants”) at a price of Rs 107 / – per convertible warrants with the right the holder of warrants to request and be allocated a share of the company’s capital. nominal value of Rs10 / – each of the company at a premium of Rs97 / – per convertible warrant within 18 (eighteen) months from the date of grant of the warrants, totaling up to Rs29.96cr on a preferential basis.

The company’s stock was bullish at the start of trading on Monday and around 9:24 a.m. GSS Infotech Ltd was trading at Rs 127.05 per coin, up Rs 6.05 or 5% (upper circuit) from its previous close of Rs 121 per coin on BSE.

The company said the board had identified Polimeraas Limited as a potential target valued at around Rs250cr according to the valuation certificate dated December 2, 2021, filed before the board approved the investment in Polimeraas Ltd., a company active in the trade of vegetables, fruits and consumables for the home by subscribing to 10,000,000 shares of Rs10 each of Polimeraas Limited at a price of Rs250 per share, for a consideration of Rs25cr.

Draft transaction documents were submitted to the board and the board approved the proposed transaction and authorized Bhargav Marepally, Managing Director to negotiate, enter into all deeds of agreement, amend them and execute the final agreements and the proposed merger of Polimeraas Agros LLP (Which will be converted into Polimeraas Agros Private Limited) with GSS, subject to the consent of the Company’s shareholders, stock exchanges and other regulatory authorities, as follows:

a. Conversion of Polimeraas Agros LLP to Polimeraas Agros Pvt Ltd
b. Post conversion, merger of Polimeraas Agros Pvt Ltd with GSS and place thereof:

  • GSS will issue 92 20,000 equity shares to shareholders of Polimeraas Agros Pvt Ltd.
  • GSS will issue convertible securities with a call option (at the request of GSS) to shareholders of Polimeraas Agro Pvt, Ltd for the balance of the consideration in accordance with the valuation report which are convertible / redeemable after 12 months extensible up to 18 months.

The Board of Directors considered the proposal to explore various options to raise funds not exceeding Rs500cr through a follow-up public issue, or any other method on a private placement basis, through the through one or more authorized methods or issuance of securities in any combination thereof, etc. for the approval of the shareholders of the Company.

The Board of Directors considered the proposal to explore various options to raise funds not exceeding Rs500cr through the placement of shares with qualified institutional buyers via the placement of qualified institutions (QIP) subject to the approval of the shareholders of the company.

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