25th March 2006: Oracle Global bought 28.20 lakh shares on the NSE for Rs 1,397.54 a piece. US business software giant Oracle today scaled up its stake in i-flex solutions by 3.71%. Oracle Global Mauritius, the arm through which Oracle holds 43.08% stake in the city-based i-flex, purchased this additional stake for a total consideration of Rs 394 crore.
Oracle Global bought 28.20 lakh shares, representing a 3.71% stake, on the National Stock Exchange for Rs 1397.54 a piece. Post this acquisition, Oracle’s holding went up to 46.79%.
Oracle had bought 41% stake in i-flex from OrbiTech Ltd, a Citigroup Venture Capital International, for $ 900 million last year. Post this acquisition, Oracle Global came out with the mandatory 20% open offer which managed to scoop only 517,375 shares, representing 0.68%.
Industry sources said the Oracle move showed that the company aimed at scaling up its stake in i-flex to 51%.
“After its abortive attempt to jack up its holding through the open offer, it waited for a while as the Sebi rules demand cooling off period. Now, it will slowly raise its holding so that it could have absolute majority in i-flex,” they added.
Priced at Rs 882.62 a share, the open offer was not accepted by the shareholders as it was below the market price. The i-flex stock closed at Rs 1395.95 on the NSE, 7.58% higher than yesterday’s close. The stock opened at Rs 1299, reached to the 52-week high of Rs 1405. The i-flex has 7.6 crore equity shares of Rs 5 each.
As on December 31, Oracle had 43.08% stake in i-flex. Mutual funds held 7.16%, FIIs 16.99%, private corporate bodies 4.38%, NRIOCB held 6.59% and the public holding was 20.95%.