According to Zicom finance director, Manohar Bidaye, the company may place up to a maximum of 40 lakh shares to fund the upcoming projects. The proposal will be placed at the AGM on February 1, 2000. The company is expecting a price between Rs 200-300 for the private placement. ICICI Venture Capital is the advisor to the issue and the presentations to the financial institutions are about to begin. On the Bombay Stock Exchange, the company has hit the upper circuit at Rs 75 today.

The expansion project is consolidate activities in the domestic electronic security market through introduction of newer devices. The home security devices, which the company will launch in 12 cities across the country, will be to monitor homes against theft and fire through central stations. Each user will have to pay around Rs 750-1000 per month with corporate users paying a different tariff. Zicom is also looking at developing security solutions for major sectors like banking and finance. The diversification project is to develop solutions for Motorola's smart cards. The company is setting up a development centre to develop solutions for smart cards.

The project will cost around Rs 18 crore, for which the private placement fund proceeds will be utilised. "We have the option to raise further funds once we stabilise with the current expansion project," the official said. The company is also expecting a substantial rise in sales for the current year. Analysts say electronic solutions market has high entry barriers in terms of acceptance hence an association with a global name would do a world of good to the Indian companies.

Motorola may pick up stake in Zicom
Zicom's association with global communications giant Motorola may culminate with the latter picking up a significant stake in Zicom. Motorola is believed to have shown interest in the company, which will be developing solutions for its smart card business.

"There is no such plan for the moment but down the line, it could be possible," a company official said without elaborating. Motorola wants Zicom to develop the market for smart cards in India and once it captures good market share, the global giant may chip in with funds for further development.

Zicom is looking at major business coming from banking, finance and consumer sector for its security solutions through its tie-up with Motorola.