This revamp, said Babu Thiagarajan, chief executive officer, Transys, is a prelude to the proposed IPO of the company. The company hopes to tap the capital market within the next one year to fund its both its overseas and domestic expansion plans. Apart from increasing its US presence into California and Dallas, the company also hopes to set up a second ODC (offshore development centre) at Chennai and Bangalore soon.

V Krishnaswamy, President of the parent firm, Transformation Systems Inc of the US, said that a proposal to divest stake up to 10 per cent to a strategic investor was also on the cards. This initiative is being seriously looked more as a qualifying norm for an IPO issue.

The company is also working out an employee stock option plan (ESOP) to key persons up to 10 per cent of the company's total networth of $4 million (Rs 16 crore). All these divestments will see each of the promoters - Babu Thiagarajan and Krishnaswamy - shedding about 10 per cent of their stakes at the time of an IPO.

Highlighting the company's operations, Krishnaswamy said that the company, engaged in the e-commerce area, has bagged a host of orders during the last two quarters from clients like Bell Atlantic, Smithkline Beecham, Oracle Corporation etc.