Southern Online Services Ltd, a
Hyderabad-based Internet service provider and a public
listed company, is entering biotechnology area by acquiring
Southern Biofe Bio Fuels Pvt Ltd. The biotechnology venture
is proposing to set up commercial biodiesel production
unit near Hyderabad with an investment of Rs. 14.84 crore.
The company recently held an Extra
Ordinary General Meeting with its share holders to consider
raising the company's authorised capital from Rs. 6 crore
to Rs. 12 crore and to go for an issue of 62,96,603 equity
shares of Rs. 10 each amounting to Rs. 6.29 crore through
rights / further issue to the existing shareholders and
others in a ratio of 1:1.
The EGM also considered altering
the main objects of the memorandum of association of the
company incorporating the objects enabling the company
to undertake activities of biotechnology, manufacture
of biodiesel, alternative fuels, etc.
The Extra Ordinary General Meeting
has also decided to change the name of the company as
Southern Online Bio Technologies Ltd in view of the change
in the business and also allotment of 3,43,097 equity
shares of Rs. 10 each amounting to Rs. 34.30 lakh of the
company to the shareholders of Southern Biofe Bio fuels
Pvt Ltd for consideration other than cash in exchange
for the purchase of shares of Southern Biofe Bio fuels
Pvt Ltd under preferential allotment.With this new business
SOL is targeting to achieve more profits as per N. Satish
Kumar, Managing Director, SOL.
"The reason of entering into
this new activity is that the company already proved that
it can run any new business successfully. We were new
when we started ISP. There is no wrong getting into any
new business activity which provides benefits to the company,"
over biodiesel has got more reach as it has been accepted
by the global market. Currently global market is striving
to reduce pollution with alternative fuels like biodiesel
and the viability of the product is unquestionable,"