Kshema Technologies, which is planning to float an IPO in July, is expected to raise around Rs 100 crore through the process. It has already offloaded around 3 per cent stake to promoters of the US-based consulting group which was acquired by the Bangalore-based company recently.
The promoters of the US-based RJAY Consultants Inc (RCI) which was taken over by Kshema have bought 2.67 per cent stake in Kshema for Rs 5.16 crore on a cash-cum-equity deal. Both the FIPB and the RBI have cleared the deal, sources involved in the deal said.
Kshema which has embarked on an aggressive growth plan through organic and inorganic means, is currently talking to a few companies for acquisition. It is also planning to go in for an IPO to mop up around Rs 100 crore and is expected to go in for Nasdaq listing in another couple of years.
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At present, Kshema has been valued at around Rs 500 crore. In September, 1999 IL & FS Venture Corporation Ltd and Citicorp Finance picked up 17 per cent stake in the company for Rs 15 crore and around that time, Kshema was valued around Rs 100 crore.
The seed investors, Sivan Securities, hold over 40 per cent stake in the company. The company posted a net profit of Rs 7.9 crore during 1999-2000 compared with Rs 2.66 crore during the previous year, recording a 200 per cent growth in net profits. Revenues have grown by over 161 per cent to Rs 2.37 crore during 1999-2000 compared with Rs 9 crore during the previous year. Post acquisition, Kshema has projected a combined revenue of $16 million during 2000-2001.
The company is one of the leading IT consulting and services provider in the e-commerce, converging communications and healthcare industries and has around 45 companies as its clients.
The company plans to expand its operations and will add three more offices in the US, one in Canada and one in Europe.
It recently bagged a major order from Cardinal Information Corporation, part of the Cardinal Health Inc, a Fortune 500 company to offer web-based reporting services to pharma chains in the US.
Kshema recently ushered in a corporate governance practice by inducting independent directors on its board. They form over 50 per cent of the members of the board. This is conformity with the corporate governance committee guidelines.
Kshema has also constituted the audit committee and compensation committees comprising of independent directors.