After Trading hour News
Ipo gives Firstsource acquisition currency
The proposed IPO of Firstsource would give it acquisition currency, said Kalpana Morparia, joint managing director, ICICI Bank.
ICICI One Source, one of the India`s leading BPO companies, today announced that the company is renaming itself as Firstsource Solutions Limited.
The company also announced that it had filed the draft red herring prospectus with the Securities and Exchange Board of India (SEBI). The company is planning to hit the capital market with an IPO of 95.6 million equity shares. The offer constitutes a fresh issue of 60 million equity shares and an additional of 35.6 million equity shares being offered for sale by the ICICI group.
Out of the IPO proceeds, Firstsource plans to keep aside Rs 180 crore for M&A, Ananda Mukerji told Iris.
Analysts are of the opinion that the Indian BPO sector has hit an inflection point. Scalability is perceived as the single biggest survival tactic for any BPO company.
Keeping in mind that the volume of work and customer expectations are constantly on the rise, the companies are expected to come equipped with the ability to ramp up infrastructure and manpower at short notices. Firstsource plans to use USD 10 million of the proceeds for capex to in order to add facilities and infrastructure.
Another USD 10 million would go into repaying part of the debt. The company currently has a total debt of USD 22 million. The forex loans are at a coupon rate of 1 to 3 above 6 months Libor and the Indian currency loans are at a revolving rate of between 10 to 11%.
Post issue, ICICI Group will continue to be the single largest shareholder with close to 34%, with Temasek holding 22%, Metavante 10.6%, Sequoia 9.37% and others.The post issue share capital will be Rs 416.26 crore from the current Rs 356.26 crore. ICICI Group currently holds 49.96% in Firstsource.
For More Information See Today's Update 3
Microsoft buys 10% in TCS China venture
Microsoft Corp. has bought a 10 percent stake in a Chinese venture that is majority owned by Tata Consultancy Services Ltd., a senior TCS official said on Thursday.
Country's top software services firm will hold 65 percent in the venture, which will be named TCS China. Three Chinese partners -- Uniware Co Ltd and two software parks -- will hold the remaining 25 percent.
The venture, which was first announced in June 2005, has a total investment of $14 million, Girija Pande, head of TCS in Asia Pacific, told reporters.
TCS set up operations in China in 2002 and has more than 25 clients there. Its Chinese operations will be merged with the new venture, which will have its headquarters in Beijing.TCS China expects to raise its headcount to 5,000 over the next five years, up from 600 now, Pande said.
Rivals Infosys Technologies Ltd. and Satyam Computer Services Ltd. are also scaling up operations in China's small but fast-growing software services market.
Kotak Mahindra Bank allots equity shares under ESOP
The ESOP allotment committee of Kotak Mahindra Bank, at its meeting held on November 23, 2006, has allotted 48,792 equity shares of Rs 10 each, pursuant to exercise of stock options granted under the Kotak Mahindra Equity Options Plan 2002-03.
Hindustan Zinc to set up captive power plant worth Rs 7770 mn
Hindustan Zinc has approved a debottlenecking project comprising of enhancing the zinc metal production capacity by 88000 MT at its smelters, installation of balancing equipments at mines and setting up of additional 80 MW captive power plant. The total estimated cost will be Rs 7,770 million and is likely to be completed by early 2008.
The company will also enter into wind power generation business.Currently, the firm is setting up a wind power project up to 75 MW in Gujarat and Karnataka at an estimated capital cost up to Rs 4 billion and is likely to be completed in phases during 2007 and 2008.
Both the above projects will be funded from internal accruals.
The proposed IPO of Firstsource would give it acquisition currency, said Kalpana Morparia, joint managing director, ICICI Bank.
ICICI One Source, one of the India`s leading BPO companies, today announced that the company is renaming itself as Firstsource Solutions Limited.
The company also announced that it had filed the draft red herring prospectus with the Securities and Exchange Board of India (SEBI). The company is planning to hit the capital market with an IPO of 95.6 million equity shares. The offer constitutes a fresh issue of 60 million equity shares and an additional of 35.6 million equity shares being offered for sale by the ICICI group.
Out of the IPO proceeds, Firstsource plans to keep aside Rs 180 crore for M&A, Ananda Mukerji told Iris.
Analysts are of the opinion that the Indian BPO sector has hit an inflection point. Scalability is perceived as the single biggest survival tactic for any BPO company.
Keeping in mind that the volume of work and customer expectations are constantly on the rise, the companies are expected to come equipped with the ability to ramp up infrastructure and manpower at short notices. Firstsource plans to use USD 10 million of the proceeds for capex to in order to add facilities and infrastructure.
Another USD 10 million would go into repaying part of the debt. The company currently has a total debt of USD 22 million. The forex loans are at a coupon rate of 1 to 3 above 6 months Libor and the Indian currency loans are at a revolving rate of between 10 to 11%.
Post issue, ICICI Group will continue to be the single largest shareholder with close to 34%, with Temasek holding 22%, Metavante 10.6%, Sequoia 9.37% and others.The post issue share capital will be Rs 416.26 crore from the current Rs 356.26 crore. ICICI Group currently holds 49.96% in Firstsource.
For More Information See Today's Update 3
Microsoft buys 10% in TCS China venture
Microsoft Corp. has bought a 10 percent stake in a Chinese venture that is majority owned by Tata Consultancy Services Ltd., a senior TCS official said on Thursday.
Country's top software services firm will hold 65 percent in the venture, which will be named TCS China. Three Chinese partners -- Uniware Co Ltd and two software parks -- will hold the remaining 25 percent.
The venture, which was first announced in June 2005, has a total investment of $14 million, Girija Pande, head of TCS in Asia Pacific, told reporters.
TCS set up operations in China in 2002 and has more than 25 clients there. Its Chinese operations will be merged with the new venture, which will have its headquarters in Beijing.TCS China expects to raise its headcount to 5,000 over the next five years, up from 600 now, Pande said.
Rivals Infosys Technologies Ltd. and Satyam Computer Services Ltd. are also scaling up operations in China's small but fast-growing software services market.
Kotak Mahindra Bank allots equity shares under ESOP
The ESOP allotment committee of Kotak Mahindra Bank, at its meeting held on November 23, 2006, has allotted 48,792 equity shares of Rs 10 each, pursuant to exercise of stock options granted under the Kotak Mahindra Equity Options Plan 2002-03.
Hindustan Zinc to set up captive power plant worth Rs 7770 mn
Hindustan Zinc has approved a debottlenecking project comprising of enhancing the zinc metal production capacity by 88000 MT at its smelters, installation of balancing equipments at mines and setting up of additional 80 MW captive power plant. The total estimated cost will be Rs 7,770 million and is likely to be completed by early 2008.
The company will also enter into wind power generation business.Currently, the firm is setting up a wind power project up to 75 MW in Gujarat and Karnataka at an estimated capital cost up to Rs 4 billion and is likely to be completed in phases during 2007 and 2008.
Both the above projects will be funded from internal accruals.
posted by SY at 4:18 PM
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