Cressanda Solutions Ltd's Rs. 49.30 crores Rights Issue to open on June 27, 2023

PNN
Mumbai (Maharashtra) [India], June 26:
- leading company providing IT solutions, digital media and IT enabled services is scheduled to open its Rs. 49.30/- crore rights issue on June 27th 2023. The funds raised through the issue will be utilized to meet the working capital requirements to fund company's expansion plans and for general corporate purposes. Right issue attractively priced at Rs. 20/- per share compared to current share price of Rs. 27.12 per share. Rights Issue will close on 11th July 2023.
The Company will issue 2,46,49,2096 partly-paid equity shares of face value of Rs. 1/- each at a price of Rs. 20/- per rights share (including a premium of Rs. 19/- per Equity Share) aggregating to Rs. 49.30/- crore. The rights entitlement ratio for the proposed rights issue is 6:97; 6 rights equity shares of Rs.1/- each for every 97 equity shares of Rs.1/- each held by the eligible equity shareholders as on the record date - 16th June 2023. Shareholders will have to pay 50% - Rs 10/- per share (including premium of Rs. 9.5 per share) on rights issue application and remaining 50% - Rs. 10/- per share (including premium of Rs. 9.5 per share) on one or more calls as decided by the board.
Last date for On-market Renunciation of Rights Entitlements is 5th July, 2023. Post the rights issue, share capital of the company will increase from Rs. 39.84 crore (39.84 crore equity shares of Rs. 1 each) to Rs. 42.31 crore (42.31 crore equity shares of Rs. 1 each).
Commenting on the development, Manohar Iyer, Managing Director and CEO, Cressanda Solutions Limited said said, "Company has taken important strategic initiatives in the recent past with a focus to expand its operations. Cressanda is at the cusp of growing exponentially with two marquee Railway projects. We are confident that after the proposed rights issue, we will be able to execute our growth strategy in a manner that creates exponential value for all stakeholders. Proceeds of the issue will further strengthen company's balance sheet and help fund its strategic growth initiatives."
Cressanda Solutions receives work order from Eastern Railways to provide advertisement and Concierge Services in over 500 trains
Company has recently received the work order from Eastern Railway for providing advertising and concierge services in trains. Company has paid the requisite 1st quarter license fees and securities deposit to the railway authority. The contract will be commenced within 60 days of the receipt of Work Order.
Company has recently won the bid in recently concluded tender floated by Eastern Railway, Ministry of Railways, towards "Provision of advertisement in EMU trains and provision of concierge services along with advertisement in Mail/Express and Premium trains operated with rakes whose primary maintenance is done by Eastern Railway". Cressanda was successful in its bid and has received an Offer Letter from Eastern Railway and complete the formalities to start the implementation. This contract is valid for a period of 5 years.
As part of the Eastern Railway tender Cressanda will get rights to advertise on interior/exterior surfaces of over 500 Mail Express/Premium trains/Inter-city trains/Local trains and provide a bouquet of services comprising on-board sale of non-catering travel related items, on board Wi-Fi, internet services and Content on Demand in Mail/Express and premium trains.
In the month of January 2023, company has bagged a prestigious order for in-coach digital advertising in the Kolkata Metro for a period of 5 years. Company is in the process of installing over 700 screens inside Kolkata Metro coaches providing Digital Entertainment along with running digital advertising. Company also has submitted a proposal to Kolkata Metro to provide Wi-Fi in coaches and Content-on-Demand services. Company aims to serve 7-8 lakh passengers daily with an annual target of 15 crore passengers and above. Company is in advance stages for the contract for providing in-coach wi-fi services.
In another important development, Cressanda has also joined hands with Broadcast Engineering Consultants India Limited (BECIL) a Govt. of India MINI RATNA Enterprise under Ministry of Information and Broadcasting and signed a joint consortium to bid for this marquee tender from the Ministry of Railways.
Cressanda Solutions Ltd is an India-based company engaged in providing information technology (IT), digital media and IT enabled services. The company provides two types of products: Technology nXT and Infra nXT. The company has embarked on a transformational journey to innovate, expand and integrate its technology offerings with capabilities to serve larger organizational opportunities. These service contracts will generally have a profitable and long-term financial profile, and will have a profound social impact.
Cressanda Solutions announced a bumper result in FY23
The company has reported total income of Rs.91.02 crores during the Financial Year ended March 31, 2023 as compared to Rs.0.24 crores during the Financial Year ended March 31, 2022. The company has posted net profit of Rs.6.08 crores for the Financial Year ended March 31, 2023 as against net profit of Rs.0.26 crores for the Financial Year ended March 31, 2022.
To deliver and successfully execute turnkey projects, the company in its new incarnation has partnered with best-in-class partners and has top talent with deep domain expertise. As the company has branched out in the past year by making huge acquisitions, Cressanda Solutions is on its way to becoming a giant company with its new approach. Apart from this, it has started expanding its reach by setting up several wholly owned subsidiaries.
Company appointed Satya Prakash, Ex-member of Railway Board and Former Senior Executive of Railways on the board
Cressanda Solutions Ltd has appointed Satya Prakash, Ex member of Railway Board Former Senior Executive of Railways and IIT Delhi 1974 Alumni as an advisor on the board. Industry veteran, Satya Prakash had joined Indian Railway Traffic service in 1977 on the basis of the then IAS ETC examination of UPSC 1976.
Satya Prakash has worked for over four decades at Indian Railways in different railway departments on Central, Eastern, Northern and Western Railways and Railway Board, Railway Tribunal etc.
In his last stint he was working as a Judge at the Railway Tribunal and as an Additional member - IT along with many strategic positions at Indian Railways.
(Disclaimer: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)