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July 27, 2001
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Money > Business Headlines > Report July 27, 2001 |
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CBI questions SBI Caps officialsBS Banking Bureau The Central Bureau of Investigation on Thursday questioned four SBI Caps officials in the Cyberspace case. The officials who were called for questioning include the senior vice president and group head of M & A and Advisory. The CBI also questioned members of the team who had worked on the private placement of Cyberspace shares with the institution. According to sources, the officials were called in by CBI at their Kitab Mahal office to understand the way in which placement was done. Around June 2000, Cyberspace had roped in SBI Caps and UTI Securities for a Rs 1 billion private placement issue. To raise the money, the company proposed to place 1.5 million equity shares (amounting to 10-12 per cent of the equity) with qualified buyers. However, according to sources, SBI Caps had only approached SBI Mutual Fund and LIC Mutual Fund for the deal but was unsuccessful in placing it. "The report was only a statement of fact and was based on information which was available in the public domain. SBI Cap apparently justified the proposal at that point of time saying Cyberspace had an impressive board of directors and the pricing of the issue was based on the Sebi formula of the 6-month average price. SBI had only forwarded the information to the investors allocated and it did not include UTI. SBI Caps did not mobilise any funds and did not get any fees in the transaction," sources said. SBI Caps had also added that Cyberspace relied heavily on a few key executives placed in UK and US to source overseas business, as it does not have an established name in overseas markets as compared to some of the other major Indian software companies. The increased growth projection will require substantial increase in manpower. How well the company is able to manage the crucial software human resource availability remains to be seen. Powered by YOU MAY ALSO WANT TO READ:
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