SONATA SOFTWARE Share price

Sonata was initially set up in 1986 as a division of Indian Organic Chemicals Ltd. ("IOCL")As part of the growth strategy chalked out in 1993 the key strategic issue to be addressed in the long term was to attract and retain employees. With this in mind it was felt imperative to offer a substantive Stock Option Plan which necessitated the formation of a separate company. Accordingly the Sonata division of IOCL was spun off as an independent company namely Sonata Software Ltd. in October 1994 for a consideration of Rs. 8.14 Crores. Of this consideration Rs. 1.75 Crore was allotted as fully paid up equity (1750000 fully paid up equity shares of Rs. 10 each at par) and Rs. 6.39 Crore as debt which has since been paid off.Following the setting up of a new company. an Employee Stock Option Plan was formulated and a Trust was formed namely Sonata Software Limited Employees Welfare Trust to which was allotted 5 Lakh equity shares each on 30th October 1995 and 21st March 1996.On 30th October 1995 the Company also allotted shares to Bhupati Investments & Finance Company Ltd. and a few employees of IOCL and Sonata. The paid-up equity share capital following the above allotments stood at 3251600 fully paid up equity shares. As part of a restructuring plan IOCL disposed of and sold its equity holding in Sonata to the present promoters of Sonata for a consideration of Rs. 78 per share and Rs. 87 per share based on the valuation certificate issued by IOCL''s auditors and in consultation with financial institution.The Company issued bonus shares at a ratio of 13 equity shares for every 10 existing equity shares in September 1998 raising the paid up equity capital to 7478680 shares.