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Tera Software to tap market for expansion

Our Bureau

HYDERABAD, June 23

TERA Software Ltd, a city-based software development company, has drawn up expansion plans including the establishment of a representative office in US and a development centre in Hyderabad.

To part-finance its Rs. 8.05-crore expansion project, the company is set to tap the capital market with a public issue of 20,00,000 shares of Rs. 10 each for cash at par aggregating Rs. 2 crores early next month, according to the Managing Director of Ter a Software, Mr. T. Gopi Chand.

Appraised by Bank of Maharashtra, the expansion project is being funded with an equity of Rs. 7.20 lakhs, where the promoters' contribution has been placed at Rs. 5.20 lakhs (equivalent to 74.05 per cent of the post-issue equity).

Bank of Maharashtra is funding the project by way of a term loan of Rs. 85 lakhs and a working capital of Rs. 1.75 crores.

To augment the balance funds, the company is slated to come up with its initial public offer (IPO) of Rs. 2 crores, Mr. Gopi Chand said.