SSI slipped into the red today following dismal quarterly results from the company.
The stock of the software services and education company shed 8.36% to Rs 60 on the BSE, off its intra-day high of Rs 67.80. A substantial volume of over 1.8 lakh shares was recorded on the counter by 12:45 IST.
The fall in the SSI scrip was attributed to the dismal third quarter results of the company. For the quarter ended 31 March 2003, it registered a loss of Rs 1.3 crore as compared to a net profit of Rs 4.05 crore in the corresponding period of the previous year. Income from operations also decreased by 58% to Rs 20.16 crore from Rs 48.17 crore in MQ 2002.
The Q3 results of SSI were far below analysts' expectations of a net profit in the range of Rs 2-4.2 crore.
Earlier in February 2003, SSI announced an open offer to existing shareholders of Aptech for the purchase of an additional 20% stake in the latter. On 10 February 2003, SSI signed a share purchase agreement to acquire the 27.18% promoter stake in Aptech.
The purchase of the shares through the open offer will increase SSI's equity holding in Aptech to over 47%, assuming full subscription and acceptance to the open offer.
According to the terms of the open offer, the company has offered to purchase 3,695,390 shares of Aptech, representing 20% of Aptech's paid-up capital of 18,149,437 shares of Rs 10 each and potential allotment of 327,510 shares under an ESOP scheme. The offer price is at Rs 49.75 per share. The offer opens on 3 April 2003 and closes on 2 May 2003.
The education and training business of SSI would be integrated with Aptech. SSI said that 'Aptech' would continue to be the brand with significant focus on long-term career courses and that 'Asset' would be the brand for certified courses. Also, 'Arena' would be the brand for multimedia courses, while 'SSI' would be the brand for short-term courses in emerging technologies.
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