DSQ Software may download non core arms to new entity

Our eFE Bureau

Chennai, Nov 27: The Chennai-based DSQ Software Ltd may sell its non-strategic divisions, hive-off one or more business divisions to a new entity. The company is in the process of appointing a consultant to suggest the strategy for business restructuring, according to a press release issued here on Tuesday.

“The consultant would help us consolidate our operations in a difficult external environment. We will begin the process of appointing a consultant with an international exposure,” said the company’s spokesperson.

An analyst with a domestic brokerage house told The Financial Express on the condition of anonymity that “the entire exercise looks like an attempt to sell off parts of the business. The company has good clients but due to image problems has not been able to find a buyer”.

There have been constant rumours in the market that the DSQ promoter, Mr Dinesh Dalmia, has been trying to sell the company. However, the DSQ spokesperson said that there was no such intentions to the endeavour.

The company has also sought through a postal ballot, the approval of the shareholders seeking their authorisation for the board to consider and give effect to the proposal of the consultant as and when finalised.

Among other things, the company has extended the current financial year upto 15 months ending March 2002.