Nu Tek India IPO opens July 29,price band of Rs 170-192/sh

Nu Tek India Limited, a Telecom Infrastructure Services Provider offering infrastructure rollout solutions to both wireless and wireline telecommunication networks, will enter the capital market on July 29, 2008, with an initial public offering (“IPO”) of 4,500,000 equity shares of Rs. 10 each (“Equity Shares”) for cash at a price to be determined through a 100% book building process (the “Issue”). The Issue comprises a Fresh Issue of 3,500,000 equity shares and an Offer for Sale of 1,000,000 equity shares by a strategic investor.

The Price Band has been fixed at Rs. 170 and Rs. 192 per Equity Share. The Issue will close on August 1, 2008. The Issue constitutes 26.07% of the fully diluted post-issue paid up equity share capital of the Company. The Issue has been assigned an IPO grade of 3 out of 5 by rating agency, CRISIL Ltd.

The Company intends to utilise the proceeds from the Issue to meet the cost of capital expenditure, overseas acquisitions and augmenting the long term working capital requirement amongst others.

Nu Tek India is a Telecom Infrastructure Services Provider with pan India operations providing end to end solutions ranging from Telecom Installations to Full Turnkey Infrastructure Rollout Services. It also provides Technical Support Services and O&M to its clients. The Company’s expertise lies in the breadth of services it offers in the telecom infrastructure space. It offers all outsourced services related to design, installation, construction, operation and maintenance of telecom networks. It is also registered with Department of Telecommunication as Infrastructure Provider - Category I.

Over the last 15 years it has been serving to almost all Telecom Operators, OEM Vendors and Third Party Infrastructure Leasing Companies. Its major clients amongst Telecom Equipment Manufacturers for whom it has successfully implemented various projects are: Nokia Siemens Networks Pvt. Ltd., Ericsson India Pvt. Ltd., Motorola India Pvt. Ltd., Nortel Networks India Pvt. Ltd., Huawei Telecommunications (India) Co. Pvt. Ltd.  and ZTE Telecom India Pvt. Ltd. Among the Telecom Operators, for whom it has successfully implemented / presently working on various projects are Tata Teleservices Ltd., Reliance Communications Ltd., Bharti Airtel Ltd., Idea Cellular Ltd., Vodafone Essar South Ltd., Videsh Sanchar Nigam Ltd., Aircel Wireless Ltd. and Shyam Telelink Ltd.. Amongst the Third Party Infrastructure Leasing Companies, its major clients are Quipo Telecom Infrastructure Ltd.,, Xcel Telecom Ltd. ATC Tower Company of India Pvt. Ltd. and IMI Ltd.

It has 1083 full time employees, as on June 15 2008, 70% of which are technical resources. It has grown at a 3 year CAGR of over 45% in its income from operations to achieve Rs.95.2 Crs with gross margins of 34% and PAT of Rs.21.2 Crs i.e. net margins of 22% for the FY 2008. As on June 15, 2008, the company has an order book of Rs.175 Crs comprising of work orders and letter of intents to be executed in FY 2009.

To accelerate growth the company is exploring overseas markets and as a first step has set up a subsidiary in Turkey. They have a contract with Ericssion AB, Dubai to provide services to their operations in Middle East. Further, they are in the process of acquiring such companies / entities which are complimentary to their requirements. The company plans to raise funds through an IPO for both its organic and inorganic growth.

The equity shares of the Company are proposed to be listed on Bombay Stock Exchange Ltd. (“BSE”) and National Stock Exchange of India Ltd. (“NSE”). The Book Running Lead Managers (“BRLMs”) to the Issue are SPA Merchant Bankers Limited and India Infoline Limited. 

Sourced From: Adfactors Public Relations Pvt Ltd