CTEL to enter capital market on Dec 29

Hyderabad, Dec 19 (UNI) Cambridge Technolgy Enterprises Limited (CTEL), a CMMI level five company focussing on providing Service Oriented Architecture (SOA) technology to US-based midsized enterprises, is entering the capital market with a public issue of 63,15,800 equity shares of Rs ten each for cash at a price of 38 per share aggregating to Rs 2,400 lakh through a fixed price issue on december 29.

The promoters contribution to the issue would be 22,57,000 equity shares at Rs 38 per share aggregating to about Rs 8.58 crore and a firm allotment of 5,000 equity shares to M/s Centrum Capital Limited.

The net issue to the public would be 40,53,800 equity shares totally aggregating to Rs 2,400 lakh, including premium.

Company CEO Bhaskar Panigrahi said the CTEL, focussing on providing SOA-based solutions on Oracle platform would need to migrate to common fusion platform over the next few years. The SOA market was itself slated for major growth trends and to achieve its growth objectives, the company has prepared a four pronged strategy combining--expanding its infrastructure and capabilities, investing on IP creation and reusable frameworks, building competency centers for SOA and strategic acquisitions.

CTEL has embarked on a project costing Rs 3,070 lakh to be funded by way of Rs 470 lakh of term loan by Hyderabad UTI Bank Rs 1,060 lakh from promoters and balance Rs 1,540 lakh from the public, of which Rs 240 lakh from QIBs (compulsory 10 per cent) and Rs 1,300 lakh from other categories of public. The company was proposing to issue its shares of face value Rs 10 each at Rs 38 per share (including a premium of Rs 28). The issue which opens on December 29 and closes on January 9 next year has been assigned a 'Care IPO Grade 2'.

Headquartered in MIT Campus and CTEL proposes to expand its R&D facility at Hyderabad and Pune with Rs 400 lakh and ramp up its Indian operation by doubling headcount to 200 by 2007 end. Besides it will set up four regional centres at the US.

Setting aside half the amount on acquisition, the company is looking at 'inorganic' growth and has charted out its map to acquire midsize companies.

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