Mastek, Law Society to Stop Investments in Veyo

New Delhi: IT solutions company Mastek on Thursday said it will make no further investments towards development of 'Veyo', a platform built to help in conveyancing process. 

Last year, Mastek had formed a joint venture -- Legal Process Technologies -- with Law Society in the UK that brought together all the processes, checks and documentation prepared and undertaken by solicitors and licensed conveyancers in the sale and purchase of residential properties.

"LPT was created to meet the need for a secure online environment in which conveyancers could conduct their work.

The review of Veyo undertaken by LPT at the instigation of its Board has shown that the shape of the market for the Veyo product has changed radically since LPT was founded," Mastek said in a filing to the BSE.

As a result, both the shareholders have decided against further investment in the development of Veyo, it added. 

"This was a hard decision to take, but is commercially the right one for all of us," Mastek Group CEO and MD Sudhakar Ram said.

The company said the losses in LPT have already been written off in its consolidated financial statements till September, 2015. 

"The additional financial impact will be restricted to the regular expenses and wind down charges incurred during this quarter, netted off against Mastek revenues from the JV for the quarter," it said. 

The actual impact, which is not likely to be significant, is being worked out and will be presented along with the company's third quarter results, it added. 

The company's revenues stood at Rs 92.85 crore for the quarter ended September 2015, while that for the fiscal ended March 2015 was at Rs 665.12 crore. 

Shares of Mastek closed at Rs 197.50 apiece, down by 1.89 per cent from the previous close on the BSE.