Ramco plans to raise Rs 125 cr from rights issue

PTI Updated - August 15, 2013 at 05:17 PM.

Enterprise software firm Ramco Systems will launch a rights issue in the next few months, through which it plans to raise Rs 125 crore.

“We will come out with a rights issue in the next few months through which we expect to raise up to Rs 125 crore.

The proceeds will be utilised for branding and marketing operations and also to retire some of our debt,” Ramco Systems CEO Virender Aggarwal told PTI.

The current debt level of the company is about Rs 320 crore, he added.

The Chennai-based company will increase focus on enterprise cloud platform, products and services, he said, adding that it will also increase its marketing presence globally.

“We are re-directing our investments. We are spending less on R&D and more on increasing our market presence,” Aggarwal said.

The firm also plans to leverage its expertise in mobility and spend more on R&D in this segment.

“In R&D, we are spending more on mobility, user interface, making our product integrate with Google Maps, GPS integration and lot less of features that we used to,” he added.

The firm recently launched its HR and Talent management solution Ramco HCM (Human Capital Management) on cloud. Ramco has been offering its on-premise HCM software globally, now being used in more than 300 organisations.

The product has been architected to bring in a Gen-Y interface, making it accessible on smartphones, integrating with social channels, besides bringing in speed and agility of an in-memory engine and intuitiveness of a context aware solution, Aggarwal said.

“We have witnessed a positive demand for HCM across markets and have signed customers across India, APAC and the Middle East,” Aggarwal said.

Besides, the firm signed a strategic partnership with Eurocopter to offer cloud-based maintenance information systems for helicopters, he added.

Going forward, Aggarwal said, “2013 is an year of transition for us. Our success will depend on how we take the brand globally.”

The firm is already strengthening its presence globally with increasing partners and offices in the US, Europe, APAC, Africa and West Asia.

“We have increased our offices in the US, APAC, Africa, West Asia, Europe. This year we also opened office in Australia, Singapore and Malaysia,” he said.

For April-June 2013, Ramco’s global revenues stood at $ 10.82 million (Rs 59.31 crore), registering a 27 per cent year-on-year growth. India contributed 37 per cent of the revenues, closely followed by Americas at 29 per cent.

Published on August 15, 2013 11:47