Mindteck to raise Rs 12.5 cr. through rights

BANGALORE: Mindteck India Ltd. of Bangalore, a software company promoted by

TAIB Bank of Bahrain, is planning to raise Rs 12.5 crore through a rights issue

to fund its expansion plans. This company was established in 1999 with the

acquisition of Hinditron and PCL Mindware of the US. Mindteck is now all set to

acquire Nikko Informatics of Calcutta.

Speaking about the rights issue, Mindteck India CEO Vijay Kumar said,

"Mindteck is already a public listed company. We would be completing the

rights issue by December. We plan to utilize the funds for our expansion plans,

which include a competency center for e-business and embedded systems in

Bangalore and expansion of our manpower."

Talking about the business structure of the company, Kumar said, "Our

current areas of focus are e-solutions and embedded systems. While both are high

growth areas, our work in embedded area is in highly specialized areas like

telecom, industrial automation, and medical electronics. The e-solutions

consulting is a wider canvas on which we intend to address a much wider spectrum

of clients, both brick and mortar companies as well as Internet startups."

Mindteck would also acquire a few more companies as part of its growth plans in

the near future.

In the first quarter ended September 30, 2000, Mindteck recorded post tax

earnings of Rs 8.4 million. With a team of over 400 people, it has established

fully functional offshore development centers in Bangalore, Calcutta and Mumbai.