Sasken plans expansion worth Rs 126 crore

NEW DELHI: Sasken Communication Technologies Ltd, a research and development company, is planning to invest Rs 126 crore in setting up another development center in Bangalore.

The money raised from the company's IPO would fund the center. Bangalore-based Sasken has announced its entry into the capital market with a public issue of 5,000,000 equity shares of Rs 10 each for cash at a premium to be decided through the book-built process. Price band for the issue has been fixed at Rs 230 and Rs 260 per share i.e. an offer size of Rs 115 crore to Rs 130 crore.

Sasken COO Prabhas Kumar said that the money raised would also be used to meet general corporate purposes, including strategic investments, acquisitions and joint ventures. He added that if the company falls short of attaining the required money for funding the development center, it would cover the shortfall through internal sources.

NOKIA Growth Partners had earlier picked up a small stake in Sasken by investing $3 million. Nortel Networks had also invested $10 million in the company.

Sasken currently employs around 2,400 people globally. It offers a combination of complementary IP software products and software services to semiconductor manufacturers, network equipment companies, and global wireless handset developers.