Raman Roy, founder of Quatrro BPO Solutions, is in talks with US banks and private equity (PE) players to offload a part of the stake in the firm to raise capital for further expansion of business. If Roy is successful in getting a strategic investor, this will be his second big cash-out opportunity. In 2002, he had sold Spectramind eServices to Wipro for about $175 million (around Rs 800 crore).
“We are willing to sell some stake if it is required as it is not possible to raise money without equity dilution. But management control will remain with us. For inorganic growth, such liquidity dilution of assets can be done. If a front-end company is bought and the advantages of offshoring can be reaped, then it is logical to go for divestment,” Raman Roy, chairman and MD, Quatrro told Business Standard.
The company has $300 million (around Rs 1,380 crore) in cash that it wants to utilise and is in talks with companies whose valuations are multiples of this $300 million (around Rs 1,380 crore). Quatrro is also contemplating some smaller deals overseas. Quatrro is looking at maximum six deals. There is 20-30 per cent chances of these deals maturing, says Roy.
Nishant Verma, vice-president of Tholons Capital explains that the stake to be diluted will depend on the size of the company that Quatrro is targeting. He adds that this new deal will add to Quatrro's client list. Incidentally, the company has regularly been on acquisition spree. In July this year, Quatrro had acquired UK-based Babel Media for $25-30 million (Rs 110-130 crore). This was Quatrro's sixth acquisition.