``We are confident of faring well as we are in a different situation. We do not have an inflated market capitalisation like a software company. Moreover, we have shown a 100 per cent rise in sales for last two years,'' said D-Link India chairman and managing director KR Naik.

The capital will be used for expanding its manufacturing facilities, augment software development and acquisition of technology for its planned foray into broadband market with ADSL modems and other offerings.

``We are looking at a technology or product acquisition, particularly in the Asymetric Digital Subscriber Line (ADSL) arena and have already had preliminary talks with some companies in Taiwan. Our parent company, D-Link Asia-Pacific, is helping us out in the identification of the target. We have some ADSL products, but the idea is to make them cheaper to make strong inroads into the market,'' added Naik. Its ADSL modem presently costs about $110, but D-Link is planning to reduce the price to $60, he indicated.

It has two manufacturing facilities in Goa which Naik said were bursting at the seam. Hence, another manufacturing plant will be set up in Goa at a cost of Rs 15 crore. Besides, D-Link has 20 persons employed in research and development in Goa, Bangalore and Mumbai.

This is planned to be increased by at least 100 more people at a new software facility which will do software development for D-Link Corporation.The company will issue 1.5 crore shares at a 30 to 40 times premium. It has plans of listing at Mumbai and one more stock exchange. Tata Finance has been appointed as lead manager and is still working out all the details, officials said.

D-Link India was set up as a 100 per cent subsidiary of D-Link Corporation in 1986. The equity was later reduced to 51 per cent. D-Link Corporation's investment in the company stands at Rs 10 crore at present. Post issue, it will get reduced to 34 per cent, Naik said. He owns about 33 per cent of the remaining 49 per cent equity.

D-Link India registered a sales turnover of Rs 149 crore in the fiscal year ending March 2000, is targeting a Rs 280 crore turnover in the current fiscal.