Noida-based R Systems divests entire stake in two overseas arms for $5.8M

By Bhawna Gupta

  • 11 Dec 2014

Noida-based software services and BPO firm R Systems International Ltd has sold its entire stake in two overseas subsidiaries to Netherlands-based Customer Contact Management Group BV for $5.8 million (Rs 36.13 crore) on a debt free-cash free basis, as per a disclosure.

Both overseas subsidiaries - R Systems Europe BV, Netherlands and R Systems SAS, France - provide business process outsourcing services like technical support, customer interaction services and back office and shared services.

Founded by Satinder Singh Rekhi in 1993, R Systems is a software, IT and BPO services provider. The company secured investments from Intel Capital and GE Capital in 2001 and 2002.

The board’s meeting held on December 10, 2014, also approved the allotment of 91,400 equity shares of Rs 1 each at the price of Rs 12.07 per share pursuant to the exercise of the stock options granted to the employees of the company and its subsidiaries. The board also approved the proposal to buy back equity shares of the company.

As of September 30, 2014, the promoters held 50.59 per cent stake in the company. Individual shareholders held 47.51 per cent stake, while the remaining 1.9 per cent is owned by the corporate bodies and others.

R Systems went public in March 2006 and its shares are listed on the National Stock Exchange and Bombay Stock Exchange. It provides software development and maintenance support to both large and medium enterprises.

Law firm AZB & Partners was the legal adviser to R Systems for the sale of the subsidiaries.

(Edited by Joby Puthuparampil Johnson)