Goldstone to raise $15m via GDR

HYDERABAD:Goldstone Technologies Ltd based in Hyderabad has decided to take the Global Depository Receipts (GDR) route to raise $15 million in the next financial year. The company is looking at aggressive expansion on all fronts. According to Goldstone Technologies executive director K Vasudeva Rao, the resolution passed at the board meeting held on December 30 is subject to shareholder's approval for which an EGM is scheduled on February 11, 2004. The Board also decided to hike the authorized capital from Rs 20 crore to Rs 30 crore.

With a listing on Luxembourg Stock Exchange (LSE) as part of the plan, the company has decided to raise funds in three tranches in the next financial year. The first tranche will be of $5 million. "The decision was taken primarily with an objective to retire debt and augment expansion plans. The initial GDR issue will be utilized to repay the IDBI debt of Rs seven crore and for capacity expansion," informed Rao. He explained that the company chose GDR issue over a preferential issue so that the foreign investors can subscribe without the lock-in period.

According to Rao, by March 2004, the company will increase its manpower base of 450 by another 400. "We anticipate an increase in our Forte to J2EE migration business. This market is expected to be anywhere between $500m to $1 billion and we are working towards capturing at least 10 percent market share in the next three years," he said.

Goldstone which focuses on automated tool for Forte to J2EE migration was presented as a preferred partner for the purpose when Sun in September 2003 announced its decision to phase Forte line by 2006. The company is also expecting a good growth in its 360 degree ERP solutions, which include right from product to application, quality assurance testing to tech support.

"We are considering inorganic growth and are firming up our acquisition plans," said Rao. He admitted that he has a ready list of some probables in the US however, it will take at least two months to come close to any decision. "We want to acquire a company with good client base," said Rao.

(CyberMedia News Service)