Il & Fs Takes 4.7% Stake In Deldot

IL&FS has picked up a 4.7 per cent stake in Deldot, a Bangalore-based IT firm. Earlier, IVC, the venture capital arm of IL&FS had picked up a similar stake in the company a few months back.

Chandrakeerthi, president and chief executive officer, Deldot, revealed that the company was going ahead with its initial public offering and not postponing it, adverse market conditions withstanding.

According to him, Deldot would be hitting the market with an issue size of 16.67 lakh shares, which would constitute about 25 per cent of the total equity base of the company.

The company would also be applying to SEBI for permission within the week and the proceeds from the IPO will be used for setting up fully owned subsidiary companies in Australia, Singapore, United Kingdom, and the Middle East. Deldot already has a fully-owned subsidiary operating in the US. The company also is, Chandrakeerthi said, in the process of appointing lead managers for its first public issue.

 

The companies will be incorporated in the respective countries and would basically act as marketing and sales offices for hawking the company's wares. Part of the proceeds would also be used for the enhancement of the existing infrastructure.

The 4.7 per cent stake taken by IL&FS and IVC would be factored in once the public issue hits the market. Post issue the promoters share in the company will come down to about 55 per cent, while five per cent would be utilised for ESOP purposes. An additional five per cent of the equity may be placed privately.

Initially, to be listed on the Mumbai and Bangalore stock exchanges the company is also planning for a listing on the National Stock Exchange within a time span of six months, post issue.

The company which posted a modest turnover of Rs. 32 crore last year is looking at increasing it to Rs. 100 crore within the next two years. The company has been divided into five strategic business units - a software solutions group, a network solutions group, a data protection group, an imaging and document management group, and a training and education group.

The company, pioneered the data storage and protection solutions in the Indian market and has tie-ups with industry majors like RaidTec Corporation, Micro Design International, Cygnet Storage Solutions and Tracer Technologies Inc.

For networking products and solutions Deldot has ongoing partnerships with 3Com, Microsoft, Novell, Oracle, Intel, SCO, American Power Conversion and Pcom.