Public listed Northgate Technologies is demerging its Internet businesses, which include portals like Bharatstudent.com, VoIP business Globe7.com, and filesharing site Ziddu.com and ad network Axill.com into Northgate Com Tech Limited, which will also be listed. Once the demerger is through, Northgate Com Tech will issue 1 share of Rs 10 face value to the shareholders of Northgate Technologies Ltd.
Following this, Green Fire technologies has be merged into Northgate Technologies, and 158 shares of face value Rs 10 will be issued for each share held in Green Fire Technologies. The face value of Northgate Technologies shall be reduced by Rs 9 without any payments to equity shareholders, and Northgate Technologies Limited will be renamed Green Fire Agri Commodities Limited. On the face of it, this appears to be a process by which Northgate is listing Green Fire Agri Commodities without a fund raising IPO process. We wonder why.
A few years ago, Northgate had been looking to sell Bharatstudent.com, but that never happened.
For the financial year ended 31st March 2012, Northgate Technologies reported revenues of Rs 389.80 crore, and a profit of Rs 2.46 crore