The Hindu : ITI to undergo change with HFCL Infotel merger

Online edition of India's National Newspaper
Tuesday, Jan 21, 2003

Business

Business

ITI to undergo change with HFCL Infotel merger

By Our Special Correspondent

CHENNAI JAN. 20. Investment Trust of India (ITI), considered once upon a time a jewel in the crown of the Chennai-based H. C. Kothari group, is set to undergo a major metamorphosis following the decision of its board to clear the merger of HFCL Infotel Ltd. with it. Consequently, the object clause of the memorandum of association of the company is being amended to facilitate the process.

HFCL Infotel is a mobile service provider in Punjab. The merger with ITI will help the mobile phone firm get a listed status. It is speculated that ITI will undergo a name change once the merger is effected after getting varied approvals from appropriate authorities.

ITI, it may be recalled, had come under the fold of Kolkata-based Sanjay Maloo group when a cash-strapped H. C. Kothari group sold its stake. Following this, the Kolkata Group had also got under its control the mutual fund business in which ITI had equity holding. Subsequently, however, ITI had sold its stake in the mutual fund joint venture to Franklin Templeton.

ITI had already quit hire-purchase business. Other activities such as leasing, investment and the rest are now sought to be de-merged into most probably Rajam Finance, a group outfit, as going businesses. The nascent ITI Financial Services Ltd. — a subsidiary of ITI — is now using the infrastructure of ITI for hawking a range of financial services products like mutual funds, insurance products et al.

It is not yet clear if the bloated merged entity - after possible name change - will keep its registered office in Chennai.

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