Tanla to hit capital market

Chennai, Nov 28 (UNI) Tanla Solutions, a provider of integrated telecom solutions and products, today announced its entry into the capital market to raise funds to part finance its expansion plans.

Addressing a press conference here, Tanla Solutions Director Amit Gupta said the company would enter the capital market on December 11 with a public issue of 1,58,85,000 equity shares of Rs two each in the price band of Rs 230 to Rs 265.

Made through 100 per cent book building process, the issue would close on December 14. At least 50 per cent of the net issue would be allotted to qualified institutional buyers (QIB) and not less than 15 per cent would be available for non-institutional bidders and not more than 35 per cent to retail individual bidders, Mr Gupra said.

He said the company proposed to utilise the proceeds to part finance its expansion plans, which included setting up of infrastructure facility for development centre at Hyderabad at an estimated cost of Rs 772.65 million and a back-up and disaster centre at Bangalore with an estimated cost of Rs 127.87 million.

Plans have also been drawn to expand and upgrade the exsiting research and product development facilities at an estimated cost of Rs 220.25 million, establishing overseas marketing offices with an investment of Rs 40.60 million.

The remaining funds would be used for regional and global expansion and for acquisition and investemnt in strategic business, Mr Gupta said.

He said the total income of Tanla Solutions on a consolidated basis was Rs 630.2 million in fiscal 2005-06 and touched Rs 871.33 million for the half year ended September this year.

The consolidated profit after tax was Rs 302.5 million in fiscal 2006 and Rs 357.09 million for the half year ended September 30 this year, Mr Gupta said.

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