Flotation deferral a blessing: Data Access

Data Access (India) sees the deferment of its initial public offering (IPO) as a blessing in disguise. "This is because we anticipate a higher valuation for the shares based on our March ending performance," said Siddhartha Ray, Data Access managing director in a telephonic interview with Business Standard.

Data Access' IPO of 50 million equity shares of Rs 10 each was slated to have opened today through the book-building process in a price band of Rs 17-20.

It was deferred following a Securities and Exchange Board of India (Sebi) directive which held back the float till allegations made against the telecom company were clarified.

"We do not have any immediate need for the funds as about Rs 45 crore will help repay our external commercial borrowings (ECBs), Rs 20 crore for long-term working capital and about Rs 30 crore towards expansion of our network overseas," said Ray.

Data Access expects a higher premium for its forthcoming IPO on the back of its performance this fiscal. "We had projected a profit after tax of Rs 55 crore to be achieved by September 2004. However, we will deliver this by March this year," said Ray.

On the back of this performance, the company expects a higher value for its shares.