The company's board is meeting on Friday, June 25 to take the necessary approvals and an application is soon likely to be filed with the foreign investment promotion board (FIPB).

Also on the agenda of the June 25 board meeting is the plan to go ahead with stock split which will involve spliting the company's equity shares into smaller denomination in accordance with the provisions of the Companies Act. The company has already informed the stock exchanges about its plans to split its equity and offer 24 per cent stake to OCBs.

According to sources, one of the consortium members is Nord Asia Investments Limited, a Mauritius-based company who along with two other companies is likley to pump in Rs 130 crore to pick up 24 per cent stake in SRG Infotech's Rs 124 crore equity.

According to sources, the promoters are unlikly toissue fresh equity and in all likelyhood, the promoters are expected to offload part of their stake in favour of the consortium. SRG's board is meeting on June 25 to take approval for the request of OCBs willing to pick up 24 per cent stake in the company's equity at Rs 40 per share. The acquisition price of the equity of SRG Infotech by OCBs is at a hefty premium to the company's current market price of Rs 10.5.

According to sources, the funds so raised would be used by the company to fund its variuous expansion programmes including acquisitions. The company has plans to acquire a $ 2.2 m US-based Internet training company and the acuisition would form part of a larger plan under which SRG will set up subsidiaries in the US involving a total investment of $ 5 million (Rs 22 crore). The company has already taken over Code India Systems, along with its clientele and businesses of automated data capture, bar coding technology and client serve technology. Prior to this, SRG tookover Silicon Valley TechnologyCorporation, a Delhi-based software company to foray into the development of ERP solutions and software image processing. In order to further expand its presence in computer education segment, the company is in the process of establishing US affiliated university in India.

SRG Infotech also entered into a strategic alliance with the Bureau of Information Technology Services India Ltd (BITS), to launch an exclusive educational satellite channel which will supplement the CBSE courses.