ESCL to raise Rs 70 cr through IPO by year-end

New Delhi, Oct 18 (UNI) Telecom/IT and media broadcasting technology service provider Essel Shyam Communication Ltd (ESCL) today said it will raise Rs 70 crore through its initial public offering (IPO) by the end of this year.

The company will issue 55 lakh equity shares of Rs 10 each through Book Building process, with premium price of the shares yet to be decided.

''With a view to develop our infrastructure up to the level of covering the next Commonwealth Games in 2010, we are raising money from the IPO,'' ESCL Director M N Vyas told reporters here.

The raised money will be utilised in the deployment of additional 250 DSNG vans to the existing fleet of 15 to meet the increased requirements and application, Mr Vyas added.

He said the company is looking for few acquisitions outside the country within the next quarter of this financial year, and all formalities regarding this have almost been completed. But, he declined to divulge further details.

''The fund will be arranged for such acquisition through its internal accruals,'' Mr Vyas said adding that the company already has presence in Ghana (Africa).

ESCL is planning to replicate 150 such programmes in Africa by 2009-10, he said.

At least two dozen news channels are in line for getting uplinking facilities from the company's VSAT system, Mr Vyas said, adding that the company is yet to receive Govenment's nod.

The company is planning to expand the Business Process Outsourcing (BPO) facility from existing 32 seats to 100 seats by the end of this year, said Mr Vyas, adding that the company will increase this strength from 100 to 500 by the end of next year.

Regarding the teleports expansion, ESCL will have another teleport in Mumbai in the beginning of next year, he informed, saying that two more teleports one each in Hyderabad and Chennai are in the pipeline.

ESCL is expecting 30 per cent growth in the topline revenue this year, he said. He said the company is planning to diversify itself into IT/ ITES sectors very soon.

Mr Vyas said this year the company has plans to set up Radio Frequency Identification (RFID).

ESCL, a 50:50 joint venture promoted by Essel Group and Shyam Group, has 3,500 remote locations as well as franchisee locations at 317 cities.

UNI SBA DKS GC1704