Jan 9, 2007

Silverline working on a comeback code

After being in the dumps for years, Silverline Technologies, once a major IT player, is trying to make a comeback into the scene.

As a first step, the company’s board would on Wednesday consider demerging Silvertoons, its animation arm. This could lead to induction of strategic or financial partner, similar to what Crest Animation, another animation focused firm, did recently.Contacted, company officials refused to comment.

On Monday, the Silverline stock touched its 5% upper circuit at Rs 15.50 in a weak Mumbai market. It has been closing at the upper circuit for the last 10 trading sessions.

The board also mulls financial restructuring of the company by way of “capital reduction through reduction/ consolidation of equity by adjusting the debit balance in the profit and loss account and creating capital reserves.

The company now plans to come out with a $12 million global depository receipts issue

In contrast, Silverline closed July-September quarter with a topline of Rs 70 crore and a net profit of Rs 1 crore.
Silvertoons was the co-producer of Hanuman, India’s first full length animation feature film.

Company officials refused to divulge details on other projects it is working on. It’s also not clear what kind of revenues Silvertoons has been averaging over the last couple of quarters.Animation/ gaming is expected to be the next big outsourcing wave.

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