HYDERABAD: Avantel Softech Ltd, a Hyderabad-based technology company
primarily into communications products and services, has announced its plans for
going global and further expansion. The company, which had started off as a
manufacturer of communications products--microwave, radio, network access, and
satcom--entered the software consultancy and products area to leverage its
inherent strength of development and design and the emerging opportunity in ERP,
Internet and Web-enabled solutions, and systems integration.
Among its ambitious plans include setting up of a software development center
in Hyderabad, a wholly-owned subsidiary Avantel Softech Inc in the US, and
expand its existing infrastructure. As part of that strategy, the company
estimates the total project cost to be in the tune of Rs 10 crore and intends to
raise the sum through an Initial Public Offering (IPO), term loans, and internal
funds. In February, it plans to go for a public issue comprising 1,338,500
shares of Rs 10 each at a premium of Rs 40 to raise Rs 6.69 crore. While about
Rs 2.5 crore will be raised as term loan from Canara Bank, the rest would come
from the promoters and friends' share. Out of the total sum of Rs 10 crore that
would be raised, about Rs 3 crore would be invested on infrastructure. The lead
managers for the issue are Canara Bank and Jardine Fleming India Securities.
Avantel, which had revenues aggregating over Rs 8 crore as on 31 March 1999,
has built its core competency in the communication field and subsequently
ventured into software products and services seeking to consolidate its strength
in communication systems and management practices. It has also successfully
developed network management software for the HDSL equipment, and has also
developed an integrated ERP package (under the name "Funwork") for
small and medium enterprises. It is now in the process of developing embedded
software for a variety of real time applications on a number of platforms.
Avantel's focus is to become an integrated solutions provider addressing the
convergence of technologies in data communications, conventional voice networks,
and computing.