Omnitech Infosolutions to raise Rs40 crore via IPO

Omnitech Infosolutions to raise Rs40 crore via IPO
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First Published: Mon, Jul 02 2007. 12 01 PM IST
Updated: Mon, Jul 02 2007. 12 01 PM IST
By PTI
Mumbai: Omnitech Infosolutions plans to raise Rs40 crore through initial public offer (IPO) in mid-July to finance its expansion and diversification plans.
It has already filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) for the purpose.
The Mumbai-based company plans to set up a disaster recovery centre in Bahrain at an estimated cost of Rs14 crore.
“We have tied up with the Bahrain-based Al-Mutawa Group, to set up a disaster recovery centre to cater to the needs of local banks, financial institutions and insurance companies,” company managing director Atul Hemani told PTI.
Elaborating on the joint venture, Hemani said Bahrain is fast developing as the financial hub of the Middle East.
“We will be investing Rs7 crore in the JV,” he said.
The company plans to achieve inorganic growth through strategic acquisitions and investments in the near future. It proposes to target companies in India and abroad, which would provide value addition to its existing products and services.
“We have identified three companies in the US and one in Japan for possible M&As in the areas of software testing and infrastructure management,” Hemani said.
“Omnitech intends to grow its business by spreading out its geographical reach to tap high potential markets such as the US, UK and Japan,” he said.
The company has chalked out plans to set up its overseas offices within a span of 8 to 9 months in these countries. Initially, these offices will also handle the functions of customer liaisoning and marketing and over a period, also other functions such as customer support operations, software development and implementation.
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First Published: Mon, Jul 02 2007. 12 01 PM IST
More Topics: Money Matters | IPOs |