Infonet IT Solutions files DRHP for Rs 60-cr IPO

Infonet IT Solutions plans to raise Rs 60 crore through the initial public offering route for its business expansion. The company has filed draft red herring prospectus with market regulator SEBI.

Company may consider a pre-IPO placement of upto maximum 25 lakh equity shares aggregating upto Rs 20 crore.

Infonet intends to utilize the issue proceeds for financing the cost of renovating and setting-up a network operating centre located at Indira Nagar, Bangalore; purchasing and setting-up new regional office at Bangalore; expansion of existing business division; cost of establishment of overseas offices; potential acquisitions; training and OEM certification programs; and additional working capital requirements.

Company provides IT solutions which includes designing and consultancy, structured cabling, switching, routing, optical fibre services, network auditing, wireless network, security, video conferencing, servers, uninterrupted power supply (UPS) and storage, voice over internet protocol telephony (VoIP), unified communications, managed leased line network (MLLN) technology, physical security and facility management services, etc.

In the financial year 2010-11, Infonet reported total income of Rs 35.86 crore and net profit after tax of Rs 3.95 crore.

Promoters Joson Thomas and Praveen Valiya Parampath hold 46.63% stake each in the company.

Chartered Capital and Investment Limited is the book running lead manager to the issue.