BUSINESS

Allsec plans to acquire US cos

Source:PTI
April 13, 2005 15:37 IST
Business process outsourcing firm Allsec Technologies, which is tapping the capital markets to raise Rs 38-50 crore (Rs 380 to 500 million) for its expansion plans, on Wednesday said it was looking to acquire US-based companies to increase its footprint in US markets.

"We are looking at few companies in the US for acquisitions. We may be able to announce during the third or fourth quarter of this fiscal," A Saravanan, president, Allsec Technologies, said in Chennai.

He said the company was also talking with investment bankers for the acquisition.

Saravanan said the initial public offering by Allsec Technologies, which opened for bidding this morning, already received bids for 50 lakh shares by noon, compared to the total offerings of 31.41 lakh shares.

The Chennai-based company has set a price band of Rs 135 to Rs 162 per share of face value of Rs 10.

"Most of the bids are in the upper price band," Saravanan said. R Jagadish, director and CEO of Allsec Technologies, said that the company was raising the funds to fund its expansion in Chennai.

The company plans to set up a new 1000-seat facility at Velachery. About 250-300 seats at the new facility would become operational by this month-end, he said, adding that the company had obtained a short-term loan of Rs 10 crore (Rs 100 million) from Canara Bank for the purpose.

Currently, venture capital funds Euronet and Kotak Mahindra Venture Funds hold 24.4 per cent and 19.1 per cent equity in Allsec.

Post-issue, this would be reduced to 17.9 per cent and 14.1 per cent respectively. The issue will close on April 20.
Source: PTI
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