Revises target from Rs 100 crore to Rs 300 crore.
Having bagged projects like video phone and video conferencing services in association with BSNL, Ahmedabad-based Sai Infosystems (India) Limited (SIS) has expedited the process of hitting the capital market. The IT solution provider plans to file a DHRP by September this year and hopes to come out with a public issue by the last quarter of the current fiscal 2009-10. Moreover, SIS has also revised its investment plans for the various projects and now intends to raise Rs 200-300 crore instead of Rs 100 crore as planned earlier.
Talking about its IPO plans, Sunil Kakkad, chairman and managing director of SIS said, "We had earlier planned to raise only Rs 100 crore through either venture capital, private equity or the capital market. But having bagged the video telephony and some other projects, we are now expediting the process of coming out with an IPO and hope to hit the capital market by the last quarter of fiscal 2009-10. We now intend to raise around Rs 200-300 crore through the IPO."
According to Kakkad, "We will be providing a complete technology for video phone alongwith audio as well as video devices and will also install an exchange at BSNL's premises. Running purely on a broadband connection provided by BSNL, the video phone service will need an IP network connectivity with a minimum bandwidth of 256 kbps." However, citing non-disclosure agreement with BSNL, Kakkad refused to divulge investment details of the project.
The IP audio device will cost around Rs 2,000-3,000 while the video device will be priced at Rs 15,000-16,000. However, the prices are expected to come down in near future even as the volumes increase. The devices will be offered on either one time purchase basis or on monthly rental basis.
While BSNL has tied up with Ahmedabad-based Sai Infosystems for video telephony, it has signed an agreement with Delhi-based RiVACOM Pvt. Ltd. for video surveillance. Both SIS and RiVACOM will be providing the software solutions and equipment for video telephony and video surveillance services, respectively.