Date:25/07/2006 URL: http://www.thehindubusinessline.com/2006/07/25/stories/2006072504290400.htm

Back Cambridge Tech to expand

Our Bureau

To raise Rs 24 cr through IPO

Hyderabad , July 24

Cambridge Technology Enterprises Ltd has embarked on an expansion project that will see the company set up a US centre and a centre to support its consultancy and Services Oriented Architecture (SoA) based services.

The company is in the process of raising about Rs 30 crore to fund the expansion. Of this, about Rs 24 crore is proposed to be raised by entering the capital market with a premium issue in the Rs 63 - Rs 75 price band.

Addressing a press conference, the Director of Cambridge Technology (a business transformational solutions provider), Mr Krish Nangegadda, said that the company had been spun off from CellExchange Inc, a technology company based in MIT campus.

The Chief Financial Officer of Cambridge, Mr Y. Ramesh Reddy, said that the prospectus for the IPO is awaiting the regulator's nod. Of the Rs 30 crore proposed to be raised, Rs 24 crore will be from the IPO proceeds.

Of the balance, Rs 2.7 crore is from a term loan from UTI Bank and Rs 2 crore from CellExchange.

The issue, to be lead managed by Centrum Finance, will help dilute about 30 per cent of the company stake. Last year, the company changed its accounting year from January to December to April to March. On an extended year of 15 months, the company recorded revenues of Rs 18.66 crore.

Enterprises are preferring a new approach to development referred to as Rapid Application Development Methodology, which makes use of SoA, where reusable technology components are used, Mr Krish said.