Mumbai, June 14: In a unique way of strengthening relationship with key customers, i-flex Solutions has announced that it would issue convertible warrants or options to General Electric Capital Corporation and IBM Global Services India Pvt Ltd. The warrants or options will be converted into equal number of i-flex shares at a later date.

GE Capital will pick up a 0.5 per cent stake in the software solutions provider by subscribing to its warrants/options. i-flex will also issue up to 80,000 warrants/options to IBM.

The i-flex offer comes on the back of its banking product, Flexcube, being nominated by GE Capital for its worldwide retail banking operations including consumer banking, commercial banking, internet banking and investor servicing.

The decision to issue warrants or options to GE Capital was taken today at a board meeting of i-flex Solutions.

In a communication issued to the stock exchanges, the software firm said that both the companies had signed a software license agreement for an enterprise-wide deployment of the Flexcube product suite and related master software implementation and development services agreement with it.

“For strengthening this relationship, the board has approved the issue of warrants or options up to 0.5 per cent of the fully diluted equity share capital of the company to General Electric Capital Corporation. The warrants are convertible at a future date into equal number of equity shares of face value of Rs 5 each”, the i-flex statement to stock exchanges said.

It added that subject to shareholders’ approval, the exact number of options to be issued to GE would be decided in a board meeting, which will be held after the annual general meeting of the company.

Regarding the warrants/ options to be issued to IBM, i-flex said that these are additional warrants/options proposed for IBM to strengthen the strategic relationship i-flex has with IBM Corporation.