Financial Daily from THE HINDU group of publications
Wednesday, Oct 15, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Info-Tech - IPOs
Markets - IPOs


Weal Info's Rs 14-cr IPO opens on October 20

Our Bureau


Mr Ken Sagar, Chief International Operations), Weal Infotech, at a press conference in Mumbai. - Paul Noronha

Mumbai , Oct. 14

WEAL Infotech Ltd, which was set up in 1999, is coming out with a public issue of 1.39 crore equity shares of Rs 10 each for cash at par aggregating Rs 13.90 crore.

The issue, opening on October 20, will close on October 27.

The funds raised from the issue will be used to ramp up the company's Hyderabad-based BPO facility, to 500 seats from 50 currently.

According to Mr Ken U. Sagar, Chief (International Operations), Weal Infotech, the capacity scale-up was required as it lent credibility to the operations and would help them forge long-term tie-ups with their clients.

The company has identified BPO as a sector with potential and is targeting "middle corporate America" for business, which he estimated at $150 billion.

According to him, while the bigger US corporates, such as GE, have the resources to set up their own BPO centres in the country, the mid-sized companies do not have the same resources. This segment, he said, depended on third-party players to outsource these jobs.

Within the mid-sized companies' segment, he said, the financial services companies, in particular, held out potential for good business. The company, he said, was targeting projects of $2 million to $3 million, from companies with an average size of $100 million.

Queried on the protest against outsourcing of jobs in the West, he said, the BPO business would continue to grow regardless of these incidents since outsourcing made eminent financial sense.

Mr Sagar added that the dotcom meltdown was due largely to the fact that it was `idea-based.' In contrast, the `BPO-bubble' being need-based, was a more stable operation.

The shares offered through the prospectus are to be listed on the Hyderabad Stock Exchange, BSE, Madras Stock Exchange and the Bangalore Stock Exchange.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Idea Cellular nearing financial closure — Rs 2,000-crore syndicated loan fully arranged


AirTel ties up with Motorola
Hinduja TMT weighing options on Fascel stake
Bharti constitutes mobility board
HCL Info's frontline unit revenue up 35 pc
FMR, Fidelity pick up more Satyam shares
Sutherland plans to hire 3000 in 6 months
`Banks could leverage IT for business growth'
Weal Info's Rs 14-cr IPO opens on October 20
Four Soft gets funding from UTI Venture, APIDC
Tracmail forms new entity to focus on IP services
Karvy partners C-Bay to start MT venture
Sify makes Bangalore WiFi-enabled city


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line