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Softsol to raise Rs34 crore to finance expansion plans

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CIOL Bureau
New Update

Cyber News Service

CHENNAI: Softsol India Limited, subsidiary of Softsol Technologies Inc, USA, is coming out with a public issue of Rs 34.13 crore (3,592,484 equity shares of Rs 10 each at a premium in the range of Rs 75-80 per share) in order to finance its expansion plans. The total outlay for its expansion has been fixed at Rs 46.9 crores, part of which will be financed by the issue and the rest (Rs 12.8 crores) will come from internal accruals.



The company, which has already set up an offshore software development center in Hyderabad, plans to open centers in the UK, Middle East, Singapore, Japan and Australia. The outlay for this has been earmarked at Rs 12.75 crore. The center at Hyderabad also operates as an offshore incubator in the areas of client/server, e-commerce, telecommunications, network management, etc. "The incubator is for entrepreneurs who are in need of infrastructural facilities, which we will provide," said Srini Madala, Managing Director, Softsol India.



For the Indian market, the company plans on developing Internet based products. "We are planning to introduce products based on the Application Service Provider model, as we foresee a huge potential for it in India," said Mr Madala. For the purpose, the company plans to set up a server in India with a mirror server in US. Softsol is also planning to recruit 500 people in India by January 2000.



The company plans to have two groups of marketing teams with one focusing on e-solution products and the other on IT services. The company provides onsite and offshore development services like E-solutions, network and telecommunications software services, IT consulting, systems integration, data warehousing, enterprise computing etc. Some of its clients include Johnson & Johnson, MCI, Sun, HP, Hitachi, Dialog Corporation, United Airlines, Cisco, IBM etc. In terms of revenue, Softsol is projecting a turnover of Rs 15 crore by March 2000. "And, a 50 per cent growth every year after that," added Mr Madala.

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