INDIAN EXPRESS (Business Express)
Southern Online Services to enter Biotechnology field
ENS ECONOMIC BUREAU,
April 10: 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
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,
"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," he said.
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," Satish added.