Fatpipe Networks plans to raise Rs 49 cr via IPO

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Fatpipe Networks India is coming out with an initial public offering (IPO) of Rs 49 crore. It has filed a DRHP (draft red herring prospectus) with SEBI.

Fatpipe's core technology - router clustering, involves patented and patent-pending methods that provide the highest levels of optimization, reliability, security and acceleration of Wide Area Networks (WANs) and enable high-speed data transfer through multiple lines, multiple ISPs, and backbones over WANs with seamless re-assembly of data streams. The company manufactures a range of appliances based on its technology for data transmission over multiple lines that provides highly reliable and redundant Internet/Intranet access solution available.

The company also offers data security with encryption protocols making it more secure. Fatpipe sells its products worldwide through a network of 2 authorized distributors and over 500 resellers.

The objects of the issue are to expand the product line with enhanced Research and Development activities, specifically for development of new product-lines (Rs 6.76 crore); to establish 16 new marketing offices across the globe including additional offices in the USA (Rs 10.08 crore); for strategic acquisition of business/company (Rs 15 crore); to meet margin money for working capital requirement (Rs 7.2 crore); to meet the public issue expenses (Rs 3.55 crore) and general corporate purposes (Rs 6.41 crore).

For the year ended March 31, 2009, it has reported profit after tax of Rs 3.99 crore on total income of Rs 42.3 crore. For the period from April-September 2009, it has posted profit after tax of Rs 4.61 crore on total income of Rs 29.57 crore; for the same period - it has debt of Rs 90.27 lakh.

The book running lead manager to the issue is Keynote Corporate Services Ltd and Karvy Computershare Private Limited is the registrar.