Financial Daily from THE HINDU group of publications
Saturday, Jun 01, 2002
Financial Daily from THE HINDU group of publications Saturday, Jun 01, 2002 |
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Info-Tech
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Software Markets - IPOs i-flex IPO to open on June 5 at Rs 530 Our Bureau
(From left) Mr Rajesh Hukku, Chairman and Managing Director, i -flex Solutions Ltd, Mr Shitin Desai, Vice-Chairman, DSP Merrill Lynch, and Mr Deepak Ghaisas, CEO, Indian Operations, i -flex Solutions, at a press conference in Mumbai on Friday.
MUMBAI, May 31 THE much-awaited initial public offer (IPO) of i-flex Solutions will be finally hitting the primary market on June 5. The IPO is being made through the 100 per cent book-building process at a floor price of Rs 530 per share for Rs 5 face value share. i-flex is offering 39,61,700 shares comprising fresh issue of 33.60 lakh shares of Rs 5 each and an offer for sale of 6,01,700 shares from the existing shareholders of the company. The issue opens on June 5 and closes on June 11. Based on the floor price of Rs 530 per share, the company would be raising around Rs 210 crore (including the offer of sale). The paid-up capital of i-flex will increase from Rs 16.97 crore to Rs 18.658 crore. Announcing the launch of the IPO, the Chairman and Managing Director of i-flex Solutions, Mr Rajesh Hukku, said, ``the company intends to use Rs 170.61 crore of the net proceeds to fund setting up of new development centres at Bangalore.'' Around Rs 50 crore would be used in increasing global marketing presence, he said, adding that these initiatives included capitalising the company's subsidiaries in the Netherlands, US and Singapore, setting up marketing offices in Latin America, Europe, West Asia and the Asia-Pacific region. After the IPO, the holding of the promoter — OrbiTech Ltd, a member of Citigroup will come down from 47.47 per cent to 43.19 per cent, ESPS Trust 8.44 per cent, Financial Ventures Mauritius Ltd (a Standard Chartered group company) 1.82 per cent, others 35.93 per cent and public 10.62 per cent. Asked whether there would be any impact on the company's operations following the merger of OrbiTech Solutions (93.25 per cent held by OrbiTech Ltd) with Polaris Software, Mr Hukku said, ``there can be no assurance that our potential conflicts of interest with OrbiTech Ltd, OrbiTech Solutions or any other member of Citigroup (including, after the proposed merger, Polaris) will lessen. We expect to continue to compete with the merged entity, including competing for business from various members of Citigroup.'' However, he said, ``as part of our growth strategy, we intend to make strategic investment, establish partnerships and make acquisitions relating to complementary businesses, technologies, services or products.'' When queried about acquisitions of other companies, he said, the company plans to acquire companies mainly in the financial services area with specialised products or services. But does not want to go for merger or acquisition just of increasing the size of company. Mr Hukku said there were also no plans for consolidation of Citigroup IT business in India. Other than i-flex, Citigroup in India has E-Serve International (into BPO business) and OrbiTech Solutions (to be merged with Polaris Software).
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