Tanla Solutions public issue opens on Dec 11

Mumbai, Nov 27 (UNI) Tanla Solutins, provider of integrated telecom solutions and products, is entering the capital market on December 11, 2006, with a public issue of 15,885,000 equity shares of Rs two each in the price band of Rs 230 to Rs 265.

The issue closes on December 14, 2006. SBI Capital Markets, IL&FS Investment and ICICI Securities are Book Running Lead Managers (BRLMs) for the issue and Karvy Computershare is the registrar. The existing equity shares of the company are listed on the Hyderabad, Ahmedabad and Madras Stock Exchanges. The equities offered are proposed to be listed on these exchanges as well as on the BSE and NSE.

Company CMD Uday Kumar Reddy told mediapersons here today, ''The company proposes to raise this fund to part finance its expansion plan. The plan includes setting up of infrastructure facility for Development Centre at Hyderabad at an estimated cost of 7.72 crore, setting up of infrastructure facilities for a back up/disaster recovery centre at Bangalore with an estimated cost of Rs 1.27 crore, expansion and upgradation of existing research and product development facilities at an estimated cost of Rs 2.20 crore, establishing overseas and marketing offices with an investment of Rs 40.60 million, for meeting working capital requirements and contingencies Rs 3.89 crore and the remaining funds for regional and global expansion and for acquisition and investment in strategic business.'' ''The issue is being made through 100 per cent book building process. The issue comprises a promoter contribution of Rs 1,588,500 equity shares (10 per cent of the issue) at the issue price. This leaves net offer to the public of 14,296,500 equity shares, constituting 28.59 per cent of the fully diluted post issue capital of the company. At least 50 per cent of the net Issue shall be allocated to Qualified Institutional Buyers ('QIBs')(including five per cent of the QIB portion that would be specifically reserved for Mutual Funds) on a proportionate basis.

Further, not more than 15 per cent of the Issue shall be available for allocation on a proportinate basis to Non-Institutional Bidders and not more than 35 per cent of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to being received at or above the Issue Price, '' he added.

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