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Vishwanath Kulkarni

BANGALORE April 14

FACED with an uncertain future for its info-tech arm, Ideaspace Solutions Ltd, the GMR Group is planning to have the group company delisted from the Bombay, Bangalore and Hyderabad Stock Exchanges.

Ideaspace Solutions mainly provides IT solutions and services to ING Vysya Bank, in which GMR Group has a stake.

Commenting on the rationale behind the delisting move, company sources said: "At this point of time, the future plans for Ideaspace are not clear. The GMR group's ownership of Ideaspace allows an option to delist. Considering the fact that the plans are uncertain, we have an obligation to protect the interests of minority shareholders. Hence, we have decided to give them an exit option by offering to buy them out."

Ideaspace, which has about 190 people on its rolls till date, had a turnover of Rs 10.37 crore as on March 31, 2002. However, the latest financials are not available.

Ideaspace has convened an extraordinary general meeting on April 30 to approve the delisting of shares.

As part of its natural extension in the banking and insurance sector, the GMR Group recently picked up a majority stake in Quintant Services Ltd, a back-office services start-up. Quintant raised $29.8 million as initial funding from investors that included the GMR Group and Mr Phaneesh Murthy, former head of worldwide sales at Infosys Technologies and promoter of Primentor, among others.

Quintant plans to extend business process outsourcing by providing value-added services through a combination of business understanding, technology-enabled frameworks and intelligent analysis of data.

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