Mumbai based Zenith Infotech's cloud computing business at Rs 194 crore

Accounting firm Ernst & Young has re-valued Mumbai-based Zenith Infotech's cloud-computing business at Rs 194 crore, about 67% lower than the previous assessment done by the firm. The Bombay High Court had last month asked Ernst & Young to carry out a fresh valuation of the company's cloud-computing business taking into account the March and the June quarter financials. This was done to factor in the developments since a dispute between the company and bondholders arose last year. The audit firm had first valued Zenith Infotech's cloud-computing business at Rs 598 crore, while Grant Thornton, the valuer hired by bondholders, said it might be worth about Rs 200 crore. On Monday, a representative of offshore lender Bank of New York Mellon Trustees told the court that Zenith's cloud-computing business was worth between Rs 151 crore and Rs 211 crore. Shares of Zenith Infotech gained 4.80% to close at Rs 37.10 on the Bombay Stock Exchange on Monday, a day when the exchange's benchmark index, the Sensex, lost 0.74%.

 

Source: The Economic Times