Bangalore, December 9: Melstar Information Technologies Ltd has decided to float an initial public offering (IPO) of 22.61 lakh equity shares of Rs 10 each at a premium of Rs 50-62, aggregating Rs 13.56 crore to Rs 16.27 crore. The issue is likely to hit the primary market on January 17, 2000. The company would offer 88,900 shares to its existing members at the same premium to mop up Rs 5.34 crore to Rs 6.40 crore.The company has already received the required approval from the Securities and Exchange Board of India (Sebi) for the purpose. Established in 1986, Melstar is a leading software development company based in Mumbai and has partnerships with IBM, Microsoft, Oracle, Digital and Lucent Technologies.
The company would utilise the funds to part-finance the expansion of its software development centres in the country and abroad. The company is planning to set up a new software development centre at Seepz in Mumbai. ``We are also planning a subsidiary in the US shortly, in addition to major investments in Melstar of the UK,'' Melstar Information Technologies chairman Suresh Bansal told The Financial Express.
Melstar is looking at upgrading its existing hardware, software and other infrastructure facilities for the divisions. The company would also use the IPO money to repay a long-term loan of Rs 1.95 crore to Punjab National Bank (PNB).
The company is also launching its e-business division. The new division in alliance with IBM would take up projects related to e-commerce and the Net. ``We will offer the entire range of e-business solutions. While IBM will be our official business partner for the division, we intend to support other partners including Microsoft, Sun and Lotus with centres of excellence,'' Bansal added.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.