Four Soft Set for a Second Innings
To foray into ecommerce via Deals15 acquisition; Targets Hollywood with eShoot software in 2 years
Hyderabad (I-Newswire) December 31, 2013 - Hyderabad-based Four Soft Limited (rechristened as Palred Technologies Limited), which sold its transportation and logistics software solutions business to Transport IT Solutions Private Limited, a part of UK-based Kewill Group, in August this year, has devised a new business structure to start its second innings.
Of the Rs 300 crore of cash that it had received through the slump sale, including the real estate in Hitec City, the company has already cleared a loan of Rs 20 crore and paid Rs 60 crore towards taxes. After returning a majority of the remaining to the shareholders in the form of interim dividend and capital reduction scheme, it has retained roughly Rs 25 crore.
"Though a publicly-listed company but with no bus, iness, we are actually in a start-up mode now. We are looking at leveraging the existing investor support and residual assets like frameworks and technologies for future scalability," Palem Srikanth Reddy, chairman of Palred Technologies, told Business Standard.
Still backed by key investors like Kotak PE and ChrysCap founder Ashish Dhawan, Palred Technologies is planning to tread the inorganic path to bring new businesses on board.
Towards this, it is in the process of acquiring Hyderabad-based Premium Web Services Private Limited's computer peripherals and mobile accessories retailing portal -- www.deals15.com -- to foray into the ecommerce space. Floated in 2012, Deals15 currently has a turnover of Rs 1 crore.
"While a third-party due diligence is being carried out, we have already started the operational integration of Deals15. The 'performance-based payout' deal should be closed by the end of January 2014," Reddy said.
Stating that though their immediate focus was on ecommerce as they believed that such businesses were trendy and hence had to be built now, he said the company was also looking at entering the media and entertainment and high-end IT services verticals, which involved long-term investments.
The company has so far invested around Rs 60 lakh in developing eShoot, a script-to-post-production software with built-in project management capabilities aimed at the media and entertainment industry.
"About 60% of the single-stack product is ready. We have to add financial, master data, post-production and multi-tenancy modules. The first version of eShoot will go into the market outside of India, specifically targeting Hollywood, in two years from now," Reddy said, adding that the company was still exploring the possibilities of entering the mobile apps business.
Four Soft Limited's scrip ended the trade at Rs 16.35 on the BSE on Monday, down 0.61%, over the previous close of Rs 16.45 a share...
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Published On:December 31, 2013
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