Patni plans $150 m ADS issue

Patni Computer Systems is planning to raise $100-150 million through an American depositary shares (ADS) issue for its investment activities.

The board of directors of the company is meeting on February 19 to consider the proposal. Patni executives refused to divulge any details of the ADR scheme.

Deepak Sogani, the company's chief financial officer, said the board would meet to discuss the scheme and take it ahead.

Sources close to the development said the company intends to use the proceeds of the issue for expanding its business as well as for inorganic growth.

Patni posted a rise in net profit at Rs 72.44 crore during the fourth quarter ended December 31, 2004, as against Rs 62.94 crore in the corresponding period of the previous year. Total revenue increased to Rs 401.24 crore during the quarter ended December 31, 2004, from Rs 321.39 crore in the corresponding period of 2003.

The company late last year acquired the US-based IT services company Cymbal Corporation for a total consideration of approximately $68 million in cash, to be paid over a period of time.

Cymbal focuses on the telecommunications industry. This acquisition extends Patni's portfolio into the telecommunications segment.