Diamond Infosystems Ltd. (BSE:530801) announced a private placement of up to 3,515,000 shares at a price of INR 34 per share for gross proceeds of INR 119,510,000 on March 3, 2016. The transaction will include participation from promoters; being existing investors Diamond Projects Pvt Ltd for 550,000 shares and Manacles Enterprise Pvt. Ltd. for 1,000,000 shares, existing investors Vikas Coating Private Limited for 1,000,000 shares and Vikas Ferro Pvt.

Ltd. for 947,500 shares, and individual investor S N Bhatnagar for 17,500 shares. The shares have a par value of INR 10 per share. The transaction has been approved by the board of directors of the company and is subject to customary conditions, including shareholders' approval; to be obtained at its extra ordinary general meeting on March 25, 2016.

The shares shall be allotted within a period of 15 days from the date of receipt of shareholders approval. The equity shares allotted on preferential basis to promoters and independent investors will be subject to lock-in for a period of 3 years and 1 year respectively from the date of trading approval or as required under Securities Exchange Board of India. Post the closing of the transaction, Diamond Projects Pvt Ltd, Manacles Enterprise Pvt.

Ltd., Vikas Coating Private Limited, Vikas Ferro Pvt. Ltd., and S N Bhatnagar will hold a stake of 4.82%, 8.77%, 8.77%, 8.31%, and 0.15% respectively in the company's issued and outstanding share capital. There will be no change in control of the company consequent to the preferential issue.