i-flex eyes overseas listing

Having received an enabling resolution from its shareholders for an international listing, software company i-flex on Wednesday said it expected to get listed in about a year's time and merchant bankers would be appointed within 2-3 months after this.

"We have taken an enabling resolution from shareholders. We are to start a process of understanding the requirement of SEC of US, appoint merchant bankers so that the process would start," Rajesh Hukku, chairman and managing director of i-flex said on the sidelines of a seminar organised by the National Association of Software and Service Companies.

The merchant bankers for the process will be appointed in another 2-3 months.

"Solomon Smith Barney, which is a sister concern will play a good role, as they understand our company very well," he said but added that the company has not yet zeroed in on any merchant banker.

The company's AGM had decided to take up to 25 per cent in secondary mode of existing capital and/or $150 million as fresh equity.

"It could be either this or that, or both," he said adding that i-flex was yet to decide on whether to go for a Nasdaq or NYSE listing.

While declining to give any specific timeframe for the proposed listing, he said, "It could roughly take about four quarters to actually list."

Hukku said that the company currently has a cash reserve of about $123 million and "money was not the concern while going for the listing."

"We are just looking at what the company needs now...We need a branding in European and American markets where we have got success," he added.

On the option of going in for a sponsored ADS, for which the company also has the permission from the board, Hukku said, "We have intention to do it. And only one company has done secondary issue right now, which is already a listed ADR company. So there are lot of new things that may take time."

In India, it has got customers like HDFC bank, Bank of Baroda, Karur Vyasa Bank, Syndicate Bank, Indian Overseas Bank while overseas it has got customers like the International Monetary Fund.