CTEL will enter the capital market with a 24-cr public issue

Ahmedabad, Dec 20 (UNI) Cambridge Technology Enterprises Limited (CTEL) today announced that they will enter the capital market with a public issue of 63,15,800 equity shares at Rs 38 per share aggregating Rs 24 crores through a fixed price issue.

The issue opens on December 29, 2006 and closes on January 9, 2007.

''CTEL focuses on solving client's business problems through well designed IT solutions adopting innovation, globalisation and incorporating emerging technology trends in SOA (Service Oriented Architecture)&mobile computing,'' the company's CEO and promoter Mr Bhaskar Panigrahi said.

CTEL has three office in the US with it's operations headquartered at MIT campus in Cambridge, Massachusetts and operates in the US through it's wholly-owned subsidiary called Cambridge Technology Enterprises Inc, he said.

CTEL clients include Oracle for which SOA solutions on a Oracle platform are being provided.

The Indian operations are carried out from Hyderabad. The company intends to utilise 50 per cent of the funds raised through this issue for acquisition, Mr Panigrahi disclosed.

The remaining would be used for expansion of facilities, certifications, training activities and to set up SOA competency centres, invest in intellectual property development, setting-up of overseas offices, providing additional working capital, among others, he explained.

The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange(NSE).

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

The net public issue is 40,53,800 equity shares totalling Rs 24 crores including the premium, Mr Panigrahi observed.

CTEL has had a CAGR of about 80 per cent over last four years and a profitability of Rs 384 lakhs with a topline of Rs 18.64 crores for the 15 months period ended March 31, 206. The company made a profit of Rs 135 lakhs for the quarter ended June 30, 2006, he added.

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