Cranes Software will raise close to Rs 108 crore by issue of preferential equity shares to Spice One Colonizers and to promoters of Cranes.

Spice One Colonizers, an investment arm promoted by Ajay Singh who is part of the Spice Jet, has picked up close to 3 percent stake in Cranes Software International for Rs 36 crore. Ajay Singh, besides being a director on Cranes Software for the past two years is also on the board of SpiceJet.

Cranes on Tuesday announced that its board of directors have approved an issue of upto 4 lakh equity shares on preferential basis to Spice One Colonizers at price of Rs 900per equity share having a face value of Rs 10 each.

Cranes has also approved issue of 8 lakh equity shares to its promoters who will come up with Rs 72 crore. These decisions are subject to approval of the shareholders at the forthcoming AGM. Following the issue, the promoters' holding will increase from 34.6 per cent. The issue will be priced at not less than Rs 900 per share. The objective of the infusion of funds is towards planned business expansions.

This will include: exploiting emerging growth opportunities through focused acquisitions, joint ventures and strategic alliances both in India and abroad, acquisition of intellectual property rights (IPRs) and entering global marketing alliances for leading technical software products and also for augmenting working capital requirements of its global business operations.

Commenting on this development, Asif Khader, MD, Cranes Software International Ltd, said: cranes has a track record of rapidly expanding its global business and based on our initiatives we remain confident of the growth opportunities ahead of us. The planned investment reflects our complete focus and commitment to the Cranes' business. "The capital infusion will enable further expansion of our business both organically and through inorganic opportunities."