Financial Daily from THE HINDU group of publications
Saturday, Mar 23, 2002
Financial Daily from THE HINDU group of publications Saturday, Mar 23, 2002 |
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Info-Tech
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Software i-flex plans to sell 39.6 lakh equity shares Our Bureau
BANGALORE, March 22 SOFTWARE services and products company, i-flex Solutions Ltd, plans to sell 39.6 lakh equity shares through 100 per cent book-built route, the company informed market watch-dog, the Securities Exchange and Board of India (SEBI) on Friday. The issue will have two components — a fresh issue of equity shares and offer for sale by the existing shareholders. The fresh issue consists of 33.6 lakh equity shares and 6 lakh shares will be in the form of offer for sale. The company intends to use the proceeds from the offer to fund expansion of delivery infrastructure, increase marketing and promotional activities in key markets and general corporate purposes including strategic initiatives. Currently, the equity capital of i-flex is Rs 16.98 crore with a paid-up of 3.39 crore shares at a value of Rs 5 per share. The company plans to be listed on NSE and BSE. The firm plans to use close to Rs 17.06 crore of the net proceeds of the fresh issue to fund setting up of new development centres in Bangalore and Mumbai. Further, i-flex plans to spend Rs 5 crore to step up its global marketing efforts. These initiatives include capitalising the firm's subsidiaries in the Netherlands, US and Singapore, setting up marketing offices in key markets of Latin America, Europe, West Asia and the Asia-Pacific region. Post-IPO, while the main promoter, Citigroup-arm Orbitech Ltd's, equity stake in i-flex will drop to 43.19 per cent from 47.47 per cent, the holdings of other entities including the public will increase to 46.25 per cent from 40.25 per cent. The holdings of the ESPS Trust will fall to 8.74 per cent from 10.28 per cent and Financial Ventures Mauritius Ltd's holding will come down to 1.82 per cent from 2 per cent. While J M Morgan Stanley will be the lead book-runner for the issue, Kotak Mahindra Capital, Saloman Smith Barney India and DSP Merrill Lynch will be the co-book running lead managers. i-flex Solutions is the second IPO in the capital market to have opted for the 100 per cent book built route, after Bharti TeleVenture.
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