Ramco Systems' fall on Monday was extended today as the market did not take the company's decision to consider a rights issue positively.

The scrip of the software company dropped 3.5% to Rs 413.15 in early trades today. It lost as much as 3.9% to Rs 411.25 earlier. A total of 3,592 Ramco Systems shares were traded on BSE thus far.

On Monday, the scrip had plunged 8.3% . The stock has moved in a band of Rs 400-500 over the last few trading sessions . This range-bound movement followed a surge from the scrip's November 2002 low of Rs 118.25.

Ramco said on Monday that it will consider a rights issue. As a rights issue will involve expansion of equity, the move triggered selling in the stock.

Ramco Systems reported a net loss of Rs 8.76 crore in FY 2002-03 compared to a net profit of Rs 1.04 crore in FY 2001-02. Sales turnover fell 21.9% to Rs 93.84 crore from Rs 120.23 crore.

Recently, Ramco announced the bagging of a large order from Tata Teleservices (TTL), to design, integrate and maintain the latter's information security architecture.

Earlier, Ramco Systems tied up with e-talk Corporation, the global leader in Performance Impact Solutions, as its partner for India and South East Asia. The company will offer e-talk's contact centre quality management and e-learning tools to customers in India, Malaysia and Singapore.

The partnership will enable Ramco Systems to provide end-to-end network infrastructure and software integration, that will increase the quality of service in contact centres through enhanced agent training, customer interaction and experience tools.

Previously,  a  pure enterprise resource planning (ERP) company and a major player in that segment, Ramco System's fortunes were hit in the last couple of  years  as the ERP market went into a tailspin. A global slowdown in the IT  sector  added to its woes.

With a view to diversify, Ramco Systems made the  transition  from  a  pure  ERP  product company into a complete vendor of solutions  and services of enterprise applications. But to do so, it had to invest  big  in e.applications, a Net-based transaction processing solution for  enterprises,  and RamcoVirtualworks, a component-based architecture in which  an application is developed by assembling pre-built components (thus cutting cost and time).