The investment has been made through a preferential issue of one million shares by Systems America India to Citigroup's investment arm - Citicorp International Finance Corporation.

Citibank NA Private Equity India head Ajay Relan says that the company is looking at investments in biotechnology and life science ventures in India. "We have already invested close to $70 million in India out of a total fund of $100 million," he added.

Citigroup has already injected funds in companies including Rediff, Polaris Software, iFlex, Dishnet DSL and Silicon Automation Systems. Citigroup is one of the largest investors in technology companies globally with an investment of over $2.06 billion in over 160 companies.

Systems America chairman and managing director Adesh Tyagi told reporters that the company's initial public offering (IPO) to raise about Rs 40-55 crore will hit the market within a couple of months. Systems America will divest about 25 per cent stake to the public as part of the IPO.

Systems America is planning to use the IPO money for acquisitions in India and abroad. Major areas identified for the purpose of acquisitions are 3G telecom, wireless and e-business. The company will also accelerate its plan for expanding global infrastructure.

Citigroup's Relan says that the company will not dilute its stake in Systems America at the time of the IPO. "This is a long-term investment and we would like to stay with Systems America for the next five years," he added.