Powersoft Global goes public with a follow-on issue

Ahmedabad, Mar 17: Bangalore-based IT service provider Powersoft Global Solutions (PGSL), which specialises in high-tech radio frequency identification space (RFID) technology, has entering the capital market through a follow-on public issue.

The issue is to partly fund its mergers and acquisitions (M&A) and research and development (R&D) plans.

PGSL, a subsidiary of Nirvann Corporation of US, is one of the few Indian IT firms, which offer comprehensive RFID services to mainly track transport operations, company's Chairman and CEO Manish Poddar told mediapersons here today.

RFID uses radio waves to automatically identify people or objects by storing identification numbers on microchips. The radio waves are converted into digital information that could be passed on to the computers enabling its usage.

At present, the export-oriented unit provides innovative and domain specific solutions to business operations, ranging from retailing to aviation, aerospace and defence and utility industries in North America, Europe and Asia-Pacific countries, Mr Poddar said.

The objective of going for follow-on issue is to upgrade existing infrastructure, meet international and other working capital expenses, besides M&A and R&D, he said.

Mr Poddar, who is a US citizen, is also the promoter of US-based Nirvann Corp, which had earlier acquired PGSL shares on a stock-swap basis, with PGSL getting eight per cent share in Nirvann.

Company's director P Rajkumar Golecha, who also addressed the media, said PGSL will issue 54 lakh shares of Rs 10 each at a premium of Rs 12 per share, aggregating Rs 11.88 crore. The issue will open on March 23 and close on March 29.

UNI