PISL to issue FCCB for acquisitions

Hyderabad, Apr 26 (UNI) After a 88.32 per cent growth in its net profit at Rs 54.03 crore from Rs 452.73 crore business in 2005-2006, Prithvi Information Solutions Limited (PISL), a high-end IT solutions provider, today announced its plan to issue Foreign Currency Convertible Bond (FCCB) upto USD 70 million (about Rs 320 crore) for acquisitions and expansion in the current year.

Talking to newspersons here Company Managing Director V Satish Kumar said after the Board Meeting that the Company is expected to clear the FCCB proposal with acquisition being viewed from US-European perspective and also to enhance client penetration.

The company offers to its US-based clients, IT solutions in the domains of Technology outsourcing, Business Intelligence Networking and Process outsourcing. It had 60 clients, contributing to its sales of USD 100 million, which is in addition to ten clients, compared to 50 clients, giving USD 69 million for the year 2005.

The company had commenced its operations in Netherlands this year, earning about Rs one crore and would enter the Middle East market in the next few months.

After a Rs 135-crore IPO in 2005, PISL is planning for an issue of FCCB upto USD 70 million for acquisitions that will give the inorganic growth impetus for the next three to four years, placing it in the league of big Indian players, enabling higher growth rates in its overall business and earnings.

The IPO was used for locating its Offshore Development Centre (ODC) at Hyderabad with Rs 90 crore investment to place 1000-2000 developers during the current fiscal.

Presently, the IPO has about 350 employees in its Hyderabad Centre. In the next one month, it will open its three offices offshore at Dubai and Qatar through a JV and at Singapore for greater penetration into the European and US market, as it was looking for a 30-35 per cent increase in its revenue in 2006-2007.

MORE UNI DB KVV 1645