Thinksoft to set up Rs 16 crore unit in Chennai

IPO opens on September 22.

Chennai-based software testing company Thinksoft Global Services Limited, which is coming out with an initial public on September 22, is planning to set up a Rs 16-crore facility at the Madras Export Processing Zone here.

The price band has been fixed at Rs 120 to Rs 130 per share of Rs 10 each. The company is placing around 3 million for the IPO.

The proposed 400-seat facility, to be funded with the IPO proceeds, would involve Rs 13.7 crore for infrastructure development and Rs 1.66 crore for equipment.

The expansion of the unit would help the company expand to newer markets apart from its base of Europe. Europe accounts for 60 per cent of its revenue.

The company has a strength of around 530 people currently and services around 34 clients.

“More than 80 per cent of the companies that we service are Fortune 100 companies in the BFSI sector,” Mohan Parvatikar, director of Thinksoft Global, said.

With 8 to 9 per cent of the company’s turnover coming from domestic clients, he said they were targeting to increase their contribution within two to three years.

Euro India Investments holds around 2.5 million shares of the company and post the IPO, this would be only 2.6 per cent.

The company’s profit after tax stood at Rs 14.49 crore as on 31 March 2009.