Patni Computers Systems Ltd is to hit the capital market with book-built initial public offering in the price band of Rs 200-230 per share of Rs 2 each, even as it is eyeing acquisitions as a growth strategy and reducing dependence on the United States market by broadening its business base.
The IPO for 1.87 crore (18.7 million) shares comprising fresh issue of 1.34 crore (13.4 million) shares and an offer for sale of 53.24 lakh (5.32 million) shares would open for bidding from January 27 to February 5, 2004, PCSL chairman and chief executive Narendra Patni told reporters in Mumbai on Wednesday.
"We are listing our company to enhance brand value, helping to get better billing rates, and provide liquidity to the existing shareholders," Patni said.
The company proposes to list equity shares through a 100 per cent book-building route on the Mumbai Stock Exchange and National Stock Exchange, he said, adding the offer would constitute 15 per cent of fully diluted post issue capital of the company.
Asked about acquisition plans, he said this was the fastest way to grow but the company was not looking for "vanilla flavour" and would make small size acquisitions which fit business plans and add value.
Commenting on the business strategy, he said: "We will reduce the dependence on the US market, which currently accounts for 90 per cent of the business."
The company has taken steps to broadbase presence in Europe and Asia-Pacific region and aligned sales and market function with verticals like finance and insurance to improve services and business prospects, he added.
Patni said the company has recorded total revenues of $180.5 million [Rs 826.4 crore (Rs 8.26 billion)] for the nine months ended September 30, 2003.
The employee base of the company as on September 30, 2003 stood at 6,695 along with 107-person sales team operating from 22 offices, he added.
The company would focus on Fortune 1000 companies which have the potential to give business of $4 million or higher in the 24-30 months.
© 2026