8K Miles to raise Rs 500 crore; split shares 1:2

Mumbai, Aug 24 (PTI) Cloud computing player 8K MilesSoftware today said it plans to raise Rs 500 crore through amix of instruments, including issue of fresh equity shares orconvertible bonds via qualified institutional placement, amongothers. The Chennai-registered, but Silicon Valley headquarteredcompany also informed the exchanges that its board todayapproved a plan to split the shares having face value of Rs 10each into two equity shares of face value of Rs 5 each. The company said the fund raising plan is subject toshareholders’ approval, which it will seek at the forthcomingAGM. The company did not specify what purpose it will utilisethe funds. Explaining the rationale for share split, the companysaid it will be to improve the liquidity of shares with higherfloating stocks and make them more affordable to investors. Further, the board also recommended issue of bonusequity shares in 1:3 ratio by way of capitalisation in freereserves, subject to the approval of shareholders. The company shares ended in the negative zone on theBSE losing 2.51 per cent at Rs 2,109.65, bringing down itsmarket cap to Rs 2,299.52 crore. Expecting bonus issue, thecompany shares had rallied 5 per cent yesterday. PTI BEN NP JMMRBAS