Orbitech Second Citigroup Firm To Line Up An Ipo

OrbiTech (formerly Citicorp Overseas Software Ltd), a Citigroup firm which offers banking solutions, plans to go in for an initial public offering.

"We may go for an IPO after sufficiently broadbasing our investor and customer base," Dipak Rastogi, vice-chairman of Citigroup Investments, said. He, however, added that it was too early to say about the timing of the issue.

I-Flex, another group company which specialises in banking software, has already expressed its intention of tapping the equity market with its IPO in the near future.

"The need for the IPO is more for creation of value than cash," Rastogi added.

OrbiTech's strategy for growth also envisages the possibilities of strategic acquisitions and investments from financial and strategic investors, he said.

OrbiTech, formed by merger of Citicorp Overseas Securities and Citibank India Technologies, has targetted a revenue of $ 62 million for this fiscal. The company also projected growth rate higher than that of the industry average.

With a SEI-CMM level 5, the company plans offer software solutions banks and financial institutions in India and abroad. Ram Bhagwat, managing director of OrbiTech, said: "Currently, we are enlarging our client base."

With development centres in Mumbai, Chennai and Hyderabad, the company is planning to establish another development centre in Pune in next year. Moreover, the company would also be opening sales and marketing offices in New York and London.

Currently, the employee strength of the company is around 1200, which it plans to increase by 150 within the next four months in keeping with the increased requirements.