Tanla Solutions public issue opens December 11,2006

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Tanla Solutions Limited, a provider of integrated telecom solutions and products, is entering the capital market on  11^th December 2006 with a public issue of 15,885,000 equity shares of Rs.2 each in the price band of Rs. 230 to Rs 265. The issue closes on 14^th December 2006. SBI Capital Markets Ltd, IL & FS Investsmart Ltd. and   ICICI Securities Ltd. are the BRLMs for the issue and Karvy Computershare Pvt Ltd is the registrar. The existing equity shares of the company are listed on the Hyderabad, Ahmedabad and Madras Stock Exchanges. The equities offered now are proposed to be listed on these exchanges as well as on the BSE and NSE.

 

The company proposes to raise this fund to part finance its expansion plan. The plan includes setting up of infrastructure facility for Development Center at Hyderabad at an estimated cost of Rs.772.65 million, setting up of infrastructure facilities for a backup/ disaster recovery center at Bangalore with an estimated cost of Rs.127.87 million, expansion and upgradation of existing research and product development facilities at an estimated cost of Rs. 220.25 million, establishing overseas marketing offices with an investment of Rs.40.60 million, for meeting working capital requirements and contingencies, Rs. 389.59 million and the remaining funds for regional and global expansion and for acquisition and investment in strategic business.

 

The issue is being made through the 100% book building process. The Issue comprises a promoter contribution of Rs. 1,588,500 equity shares (10 % of the issue) at the issue price. This leaves net offer to the public of  14,296,500 equity shares, constituting 28.59 % of the fully diluted post-issue capital of the company. At least 50% of the net Issue shall be allocated to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that would be specifically reserved for Mutual Funds) on a proportionate basis. Further, not more than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 35% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

 

Tanla Solutions Ltd is a provider of integrated telecom solutions and products for the wireless market, which commenced commercial activities in the areas of telecom signaling solutions in 2000. It specializes in providing SS7 (Signalling System 7) messaging infrastructure software products including Short Messaging Service Centre (SMSC), High Density Media Servers (HDMS), Optimal Routing Solutions, Welcome Roamers, Voice Mail servers and Caller Ring Back one (CRBT). Tanla also offers messaging applications & billing services (Aggregator Services) in the UK and offshore services including software development, infrastructure management services and technical support services.

  

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