Jan 05, 2010
With the equity funds, the company aims to boost its capital expenditure in terms of expansion of IT infrastructure, campuses, and facilities along with acquisitions in the telecom space
MUMBAI, INDIA: Infinite Computer Solutions (India) Ltd., the global IT solutions and services provider, today announced here its entry into the capital market via an IPO of around 11.5 million equity shares.
According to Infinite’s CEO Upindar Zutshi, the company has come a long way since it was started way back in 1999-2000 with a sum of 1000 dollars. The company was the first to come out with the local management and global delivery concept to provide high-quality services and solutions to global enterprises and companies, Zutshi said.
“Application management outsourcing, remote infrastructure management, and research & development (R&D) are the three key IT services which are predominantly provided in telecom space with include telecom service providers, original equipment manufactures (OEMs) and independent software vendors (ISVs),” he added.
According to the company, out of the total 11.5 million equity shares, 5.7 million will be fresh issues and the remaining 5.6 million will be the offers of sale. With this, the company is targeting to raise a capital of around Rs..178 to Rs..190 crores.
The equity shares of Rs. 10 each for cash would be issued at a price to be decided through a 100 percent book-building process. The price band is fixed between Rs. 155 and Rs. 165 per share. The IPO is slated to open on January 11 with the issue closure on January 13, 2010.
About the upcoming IPO, Zutshi explained that funds will help in strengthening its business with fresh capital investments for the proposed expansion of IT infrastructure at the Bangalore and Gurgaon facilities.
Infinite has four delivery centers across India including Bangalore, Chennai, Hyderabad, and Gurgaon. The Chennai facility is part of the US-based Comnet International acquisition done in 2007.
For this, the company had raised bank loans worth Rs..12 crores and has to repay about Rs..2 crore in form of debts. Part of the IPO funds would also be used to pay the company’s debts.
Apart from the capital investments, Zutshi stated that the company will be looking out for acquisitions in the telecom, convergence, and intellectual property space.