Silverline To Float $125m Ads

Software solutions company Silverline Technologies has decided to issue American depositary shares (ADS) to raise up to $125 million. The company yesterday publicly filed a registration statement with the United States Securities and Exchange Commission.

The offering is expected to be priced in the second half of June and will list on the New York Stock Exchange under the symbol `SLT'. Merchant bankers Salomon Smith Barney International, ABN Amro Rothschild and Credit Lyonnais S A will underwrite the issue in the US and Canada, a company statement said.

Silverline will use the issue proceeds for capital expenditure, consisting primarily the build-out of its existing facilities, working capital, expansion of sales and marketing efforts, potential acquisitions and other strategic transactions and general corporate purposes.

 

The company offers its clients a broad range of information technology services including application development, migration and maintenance and e-business solutions. It has also begun to focus on customer relationship management services. It has some 920 employees in India and 430 in the US where it has a wholly owned subsidiary called Silverline Technologies Inc.

The company recently announced its results for 1999-2000. As per US Generally Accepted Accounting Practises (US Gaap) norms, the company posted a net profit of Rs 86.36 crore and clocked sales of Rs 440 crore.

It recently acquired CIT Inc, a Toronto-based international e-business solutions and services company for approximately Rs 18 crore. The buyout provides Silverline with benefits such as a greater presence in Canada, and the Middle-East as CIT has a software development centre in the export zone of Cairo. CIT has been providing Internet and intranet solutions to Fortune 1000 companies since 1993. Its clients include Air Canada and Canada Life.

The company's share on the Bombay Stock Exchange closed at Rs 372.50 after opening at Rs 382. On the National Stock Exchange it fell Rs 1.20 or 0.31 per cent to Rs 388.65.