The Hindu : i-flex floor price at Rs. 530

Online edition of India's National Newspaper
Saturday, Jun 01, 2002

Business

Business

i-flex floor price at Rs. 530

By Our Special Correspondent

CHENNAI, MAY 31. A floor price of Rs. 530 per equity share of the face value of Rs. 5 each has been fixed for the IPO (initial public offering) that i-flex Solutions, a Citigroup promoted venture, is making through the book-building route.

The issue will open on June 5 and close on June 11. It will see i-flex making a public issue of 39.61 lakh shares comprising fresh issue of 33.60 lakh shares and offer for sale of 6.01 lakh shares of Rs. 5 each. Consequent to the public issue, the equity capital will increase to Rs. 18.65 crores from Rs. 16.97 crores.

The net proceeds from the proposed IPO will be around Rs. 170.62 crores.

This will be used to finance new development centres that i-flex is contemplating in Bangalore and Mumbai, while Rs. 50 crores will be used to beef up its presence in the global market place.

Capitalising some of its subsidiaries abroad and setting up marketing offices in key places form part of the initiative to increase visibility in the international sphere.

The company intends to get listed on the National Stock Exchange and BSE.

Currently, the promoters, OrbiTech Ltd., a member of the Citigroup, holds 47.47 per cent stake in the company.Close to 9.95 per cent is held by the employee trust. Financial Ventures Mauritus Ltd., a member of the Standard Chartered group of outfits, has 2 per cent stake. The balance is held by other employees. Post-IPO, the Citigroup's holding will drop to 43.19 per cent, employee trust to 8.44 per cent , Stanchart outfit to 1.82 per cent and employees to 35.93 per cent. The dilution through the IPO will be around 10.62 per cent.

Interestingly, the floor price fixed for the IPO is much below the price of Rs. 650 at which Stanchart outfit picked up shares in i-flex three months ago.

The company came into being in 1989 under the name Citicorp Information Technology Industries Ltd. and subsequently got rechristened to its present name.

The total income of the company is Rs. 425.20 crores for the year ended March 2001. The net profit is placed at Rs.126.70 crores. About 45 per cent of its business comes from the Citigroup.

The IPO of i-flex comes close on heels of the Citigroup merging its other software arm — OrbiTech Solutions Ltd. with Polaris. It will be interesting to see how i-flex and the bloated Polaris evolve in the coming days given the fact that both get bulk of their businesses from the Citigroup.

Send this article to Friends by E-Mail

Business

Stories in this Section

Sale of 4 ITDC hotels to fetch Rs. 85 cr.

Govt-Tatas clash on VSNL decision

Crossed connection — controversy over VSNL

Rupee slides further against dollar

IDBI in talks to sell IDBI Bank stake

Shekar Swamy gets U.S. University award

i-flex floor price at Rs. 530

Equities drift further on BSE

Kuppuswamy, new KVB chief

L&T-John launches 47hp tractor

LVB signs MoU with Dabur CGU Life