Majesco USA announces rights offer

The company has set January 7 as the record date for its rights offering wherein Majesco USA's shareholders will be issued subscription rights. This offer will help Majesco to raise funds for its recent Exaxe acquisition.

The US-based subsidiary of Majesco Limited, a multinational software provider specialised in cloud-based insurance solutions, will distribute to its shareholders, as of the record date, one non‐transferable subscription right for each share held, entitling them to purchase one‐sixth of Majesco’s share at US$7.10 per whole common share.  

Rights offer proceeds will be utilised to fund the company's expansion plan, including the Exaxe acquisition and to reduce debt and accelerate growth in the cloud segment. In November 2018, Majesco announced the acquisition of Dublin-headquartered Exaxe. The acquisition will expand Majesco’s software offerings in the EMEA region and enable the company to focus on its UK customer base.

Reacting to this development, the stock was volatile in the morning session. Majesco Limited opened at Rs. 503.00 per share and registered a high of Rs. 511.60 and also dipped to a low of Rs. 499.35 per share. At 11:16 hours, the stock was trading at Rs. 504.55 per share, up by 0.84 per cent on Friday. Meanwhile, the benchmark indices were upbeat with BSE Sensex at 36,129.37 up by 322.09 points or 0.90 per cent and Nifty at 10,873.55, up by 93.75 points or 0.87 per cent.