June 15, 2001
of MphasiS BFL Limited have today, following the board meeting,
recommended to the shareholders the acceptance of Chrysalis' offer
to invest Rs.45 crores at Rs. 350/- per share. This represents a
dilution of approximately 7%.
price represents a premium of approximately 75% over current levels
and of approximately 12% over the prescribed SEBI minimum formulae
for a dilution of approximately 7%.
Commenting on the decision Mr. Jaithirth "Jerry"
Rao chairman of MphasiS BFL said, " We are delighted to have an
investor of the caliber of Chrysalis with us. We take it as a major
vote of confidence in our business model and future prospects. We
will be using the funds not only to strengthen our cash and working
capital position but also for capital expenditure in MphasiS BPO
- our subsidiary that is focused on Help Desks and Call Centers."
particularly happy that Chrysalis has placed this confidence in
us at a time when the external economic environment is tough. We
look forward to a long and mutually rewarding association with them,"
also informed that MphasiS BFL has invited Mr Ashish Dhawan of Chrysalis
to join the MphasiS BFL Board and said, "We are sure that he will
make a valuable contribution".
Ashish Dhawan, Director of Chrysalis added: " We are particularly
happy with the prospects of MphasiS BFL among the publicly listed
software companies in India. We believe they have a strong business
model and we like their management philosophy. We have talked to
their customers who have the highest respect in the capabilities
of MphasiS BFL. This in our mind is a key success factor for any
successful software company. We are planning to buy additional shares
from the market within the necessary guidelines. We look forward
to partnering the company and contributing to its growth."