Infinite Comp IPO opens on Jan 11, price band at Rs 155-165

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Infinite Computer Solutions India is entering the capital markets with a public issue of 11,503,000 equity shares of Rs 10 each for cash. The price band is fixed at Rs 155-165 per equity share. At the higher end of the band, the company will raise about Rs 189.8 crore. The issue will open for subscription on January 11, 2010 and will close on January 13, 2010.

The issue consists of a fresh issue of 57,33,600 equity shares by the company (amounts to around Rs 94 crore) and an offer for sale of 57,69,400 equity shares by Whiterock Investments (Mauritius) Limited, Vaibhav Bhatnagar and Sanjay Govil (amounts to around Rs 95 crore).

The issue will constitute 26.17% of the fully diluted post issue paid-up capital of the company. Its outstanding shares will be around 4.3957 crore post issue and the market cap will be at Rs 681-725 crore.

The fresh issue proceeds will be used for capital expenditure (Rs 25.7 crore); acquisitions (Rs 38 crore) and repayment of debt (Rs 8.4 crore).

It is a global service provider of Infrastructure Management, Intellectual Property (IP) leveraged solutions and IT services, focused on the Telecom, Media, Energy, Manufacturing, and Healthcare industries.

Telecom vertical accounted for 59.4% of FY09 and 54.4% of H1FY10 revenues. Top five clients accounted for 83.80% of revenues in H1FY10.

It has integrated network of delivery facilities across India and US. It has 14 offices across globe -  US, UK, India, China, Malaysia, Singapore and Australia. It has four delivery centers in India - company owned facility in Bangalore, and leased facilities in Hyderabad, Gurgaon and Chennai.

For the year ended March 31, 2009, it reported net profit of Rs 36.2 crore on revenues of Rs 128.7 crore and for the six months period ended September 2009, it posted net profit of Rs 20.7 crore on revenues of Rs 92.5 crore.

The book running lead managers to the issue are India Infoline Limited and SPA Merchant Bankers Ltd. Bigshare Services Pvt Ltd is the registrar.