Mid-cap tech firms in rush to go abroad

New York-based investment bank Jefferies plans entring India.

At least 11 mid-cap information technology companies are exploring the possibilities of either going in for a foreign listing or acquisitions in the overseas markets. The market capitalisation of these companies range from $20 million to $200 million (Rs 90-900 crore).

The rush of activity in the mid-cap Indian IT sector has attracted foreign investment bankers to either set up office in India or create India-dedicated teams to serve the requirement of local companies.

The latest investment bank to join the bangdwagon is the New York-based investment and institutional securities firm, Jefferies. Jefferies is keen to meet with Indian businesses that have the potential to grow internationally and need corporate finance advisory services or access to the US and European capital markets.

Speaking exclusively to Business Standard, Mickey Commar, head of Jefferies' Indian operations, said, "Jefferies is now looking at entering the Indian market. We have built a team of professionals committed to India as a region. In the present scenario, we see a breaking down of boundaries and complete globalisation for both the domestic and international markets. We have decided to focus on companies based in India."

Jefferies has at least 6 deals in the pipeline, of which three are expected to be concluded before the end of March 2005, Commar added.

Jefferies will focus on sectors such as IT, health care, telecom and infrastructure and might also consider investing in infrastructure-elated projects.

"We have done a few deals in India in the last 18 months, including the Adani Exports GDR issue and we feel more Indian companies are now at a stage where they are looking at expanding their investor base by tapping foreign investors. With more than 20 offices around the world, we plan to leverage our traditional strengths in sales and trading, and offer a full suite of banking products and services including M&A, private placements, restructuring, equities, debt, convertibles, and high yield and equity research, Commar added.

Jefferies recently expanded its M&A capabilities and technology expertise with the acquisition of Broadview International, a leading global M&A advisor, focused exclusively on the IT, communications, healthcare technology and media industries.