Intellect Design Arena plans to raise Rs 300 crore

Company to raise the money for working capital and capex

Intellect Design Arena Ltd, a demerged product company from Polaris Consulting, is planning to raise around Rs 300 crore. The company plans to utilise the money for working capital and towards capex.

S Swaminathan, chief financial officer, Intellect Design Arena Ltd said that the company has got Board's approval to raise around Rs 300 crore.The funds will be raised through issuance of securities including equity shares through issuance of securities including equity shares or other securities convertible into equity shares, including through public issue or private placement or preferential issue or any other way of public offer, rights issue or Qualified Institutional Placement (QIP).

The company will seek the shareholders' approval for fund raising in the upcoming Annual General Meeting.

Queried whether the company also would consider raising money from other investors, he said: "Board approval was given for everything, based on shareholders approval and at appropriate time we will decide which route."

He said, the company has set a target to grow by around 22-26% in in FY17 from $124 million. To support this it required working capital.

"Our estimate is that for the next three years, we need around Rs 200 crore working capital and Rs 60-70 crore for capex," said Swaminathan. He added, initially the company has been funding the working capital requirement and once it cross Rs 1,000 crore mark, which is expected next year, the company will fund partially its requirements from internal resources.

The company will also increase the authorised share capital from Rs 55 crore to Rs 75 crore subject to the approval of the shareholders.