INDIA BUSINESS WORLD - JANUARY 16^th - JANUARY 31^st - 2008

AVB GROUP TO PICK UP 5% STAKE IN CORE PROJECTS

Making its debut in the country's fledging private equity (PE) space, the Aditya Birla Group is picking up nearly 5% stake in Core Projects & Technologies, a leading IT solutions provider with special focus in education, health and BFSI. In the second phase of its association, the Birla group will acquire equity in Core's business along with Indira Gandhi National Open University (IGNOU) and the state governments, which will be spun off into a separate entity. Core's association with IGNOU is estimated to add nearly $100 million to its topline in two years while its business with the state governments is expected to earn $100 million every year.

To begin with, the Birla group will subscribe to preferential issue of 4.5 lakh equity shares or convertible warrants, representing a 4.99% stake in Core for Rs 13.50 crore.

Core Projects CMD Sanjeev Mansotra confirmed the development and said that CEO of the private equity business of the Birla group Bharat Banka will join the board of Core.