NuTek eyes US for acquisitions; Rs 100 cr IPO to come out in July

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New Delhi, Jun 18 (UNI) Telecom infrastructure service provider NuTek India today said it would look at acquiring companies in the US to expand its network as it proposes to raise about Rs 100 crore through its upcoming IPO.

''We are looking at expansion through acquisition in the US. We will use funds from our Initial Public Offering (IPO),'' company Managing Director Inder Sharma told UNI.

The company plans to raise about Rs 100 crore through its IPO, which is expected to come out in the first week of July. The public issue will comprise 4.5 million equity shares with a fresh issue of 3.5 million shares and an offer for sale of one million shares.

''The net issue to the public is for 4.4 million shares and a reservation of up to 1,00,000 shares for the employees. The net issue will constitute 25.49 per cent of the post issue paid-up capital,'' he said.

The funds will also be used for capital expenditure and augmenting long-term working capital requirement.

The book running lead managers to the issue are SPA Merchant Bankers and India Infoline.

The Gurgaon-based firm has companies like Nokia, Ericsson, Motorola, Tata Teleservices and Reliance Communication as clients.

The company offers infrastructure rollout solutions for both mobile and fixed telecommunication networks.

NuTel has set up a subsidiary in Turkey called 'NuTek Telecommunication Consultancy Engineering and Foreign Trade Ltd Liability Company'.

The company is also expects faster growth as the country gears up to adopt technologies such as 3G and WiMax. ''We will have the technology ready before the deployment starts and expect this vertical to contribute to the business to a great extent,'' Mr Sharma said.

Talking about emerging markets, Mr Sharma said the West Asia and North African regions look as promising prospects as they have features similar to India. ''Countries like Nigeria and Ghana have huge population base which is ready to adopt technology. They will adopt the latest technology fast and that presents a lucrative option to us,'' Mr Sharma said.

UNI SR MP RAI1936

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