InfrasoftTech eyes capital markets to fund expansion plans
Monday, Sep 06, 2010 at 18:55

Midcap IT player Infrasoft Technologies is set to grow through acquisitions and aggressive expansion plans that it has on its agenda. While its majority shareholder Baring India has been funding most of its growth plans, the company says that it may eye options to tap the capital markets, reports CNBC-TV18's Kritika Saxena.

Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show »

Infrasoft Technologies, a midcap IT solutions player handles services as well as product portfolio and is betting big on FY11. Acquisitions are on the agenda now. While there will be large scale acquisitions in the US, Europe and Canada they are also looking at several niche acquisitions. In the current fiscal, they could be looking at more than one acquisition.

They are looking at growing their services portfolio in Europe and their product portfolio in Canada as well as the US. Sources said going forward in order to raise funds for acquisitions they may be looking at tapping the capital markets.

Hanuman Tripathi, CEO and MD of the company said that that was one of the options that they could be looking at. Earlier, Baring Private Equity was the one stop shop for all their funding purposes. Sources said the IPO route could be one of the agendas to raise funds.

Said Tripathi, "There is a requirement of extra capital which is going to come up because of our acquisition plan as well as capex plan. We would like to invest in new geographies, new areas and so on and so forth. Presently our majority financial partner, the substantial partner, the majority partner in the company, Baring India would be very happy to fund probably all our growth needs. There had been discussions with regards to looking at alternate sources like IPO and so on and so forth."

So acquisition is not just on the agenda but they are also looking at expanding going forward in tier I as well as tier II cities. About 15% of their overall capital expenditure will go into expanding across the geographies.

Also watch the accompanying video...