Nutek to raise Rs 100 cr to fund global expansion plans

Mumbai, Apr 24 (UNI) Delhi-based Nutek India Limited, a leading telecom infrastructure solutions major, is mulling private equity placements to raise up to Rs 100 crore to fund its global expansion plans and for setting up a plant to manufacture telecom towers.

Speaking to UNI here, Nutek India's Managing Director Inder Sharma revealed that the company was in the final stages of negotiations with two overseas private equity funds and the deal would be finalised by this month-end.

''We will be raising up to Rs 100 crore in two phases spread over one year,'' he said, adding that the major portion of the money would be utilised for working capital purposes. ''An IPO for tapping funds is another route which we are considering,'' Mr Sharma said.

Nutek's, whose core business comprises building networks in both wireless and regular wireline segments for major global networks such as Nokia, Siemens, Ericsson and Motorola, functions as a sub-contractor for them providing value-added services to their customers.

The company is now targeting key overseas markets such as Africa, Mr Sharma said, adding that Nutek was finalising plans to foray into Nigeria where its engineering team is already present.

''We see a huge revenue-potential in Africa and in particular from the Nigerian market.'' The company has earmarked an outlay of Rs 12 crore for its overseas foray, which, it plans to ramp up in the next few years. ''In four years (by 2010), we hope to grow our overseas business to 50 per cent of our total revenues,'' Mr Sharma averred.

The company had clocked a turnover and net profit of Rs 74 crore and Rs 15 crore-plus respectively in FY 06.

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