Jan 06, 2010
MUMBAI: Infinite Computer Solutions is tapping the capital markets with a public issue of equity shares, valuing the Bangalore-based software firm as high as Rs 725 crore.
Temasek, which holds 9.6% in the company through White Rock Investments, is selling its stake completely. The promoters, who own 78% are also selling a portion of their stake. The issue will consist of 11.5 million shares and the price band has been fixed at Rs 155-Rs 165 per share.
Infinite had revenues of Rs 495.8 crore and a net profit of Rs 45 crore for FY09. The firm recently decided to go public after postponing it last year due to bad market conditions. The issue is opening on January 11. Up to 50% of the issue will be allocated to QIBs and up to 30% of the QIB portion may be allocated to anchor investors at a discretionary price.
The company is mainly into software application development and maintenance but has diversified into other areas such as remote infrastructure management and R&D services. Over 60% of its revenues come from application development. It counts some big names, such as IBM, Fujitsu, Alcatel-Lucent, General Electric, ACS (now owned by Xerox) and Verizon, among its clients.
The company's CEO Upinder Zutshi said its strategy was to position itself as an alternative to large IT service providers and focus on large clients. While the focus on large clients has helped it bag big names, a source of potential risk could be that 90% of its revenues come from its top 10 customers. The top client contributes about 35% of its revenues.