Tanla Solutions to raise Rs 380-421 cr for growth plan

New Delhi, Dec 1 (UNI) Hyderabad-based Tanla Solutions Ltd, a provider of integrated telecom solutions and products, has ambitious plans for expansion in the US, Austria and Western Europe and will raise Rs 380 crore-Rs 421 crore from its follow-on public offering (FPO), opening December 11.

The company is looking for regional and global expansion and for acquisition and investment in strategic businesses which will be fully-funded by the FPO.

''About 99 per cent of our revenues come from our messaging applications and billing offshore services in the UK. We expect to expand our operations in the US, Austria and Western Europe by third quarter of the next fiscal,'' Mr Amit Gupta, Director, Tanla Mobile Ltd, a wholly-owned subsidiary of Tanla Solutions UK Ltd, told UNI here today.

Tanla Solutions's consolidated profit after tax (PAT) stood at Rs 35.7 crore during the half year ended September 30, 2006, while its total income on a consolidated basis was Rs 87 crore during the first six months of the current fiscal.

At present, the company's three areas of operation -- telecom products, net aggregration and offshore development -- account for 21 per cent, 68 per cent and 11 per cent of the company's profits respectively, he said.

Mr Gupta said, the proceeds of the FPO will be used to set up an infrastructure facility for Development Center at Hyderabad at Rs 77.26 crore, while Rs 12.78 crore will be invested for setting up infrastructure facilities for a backup/ disaster recovery center at Bangalore.

Expansion and upgradation of existing research and product development facilities will take about Rs 22.02 crore, while Rs 4.06 crore will be utilised in establishing overseas marketing offices, Mr Gupta added.

''For meeting working capital requirements and contingencies Rs 38.95 crore will be raised through the FPO and the remaining funds for regional and global expansion and for acquisition and investment in strategic businessses.'' The FPO will close on December 14.

The company will enter the capital market with 15,885,000 equity shares of Rs 2 each in the price band of Rs 230 to Rs 265.

SBI Capital Markets Ltd, IL and FS Investsmart Ltd, ICICI Securities Ltd are the BRLMs for the issue and Karvy Computershare Pvt Ltd is the registrar.

The existing equity shares of the company are listed on the Hyderabad, Ahmedabad and Madras Stock Exchanges. The equities offered now are proposed to be listed on these exchanges as well as on the BSE and NSE.

The issue is being made through a 100 per cent book building process and 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 (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 FPO shall be available for allocation on a proportionate 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 valid bids being received at or above the issue price.

Tanla Solutions Ltd specialises in providing SS7 (Signalling System 7) messaging infrastructure software products including Short Messaging Service Centre (SMSC), High Density Media Servers (HDMS), Optimal Routing Solutions, Welcome Roamers, Voice Mail servers and Caller Ring Back one (CRBT).

Tanla's worldwide marketing is undertaken through its subsidiary Tanla Solutions UK Ltd, London.

Tanla Mobile Ltd, previously known as Mobizar Ltd, provides aggregator services to all the major mobile network operators in the United Kingdom.

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