3i Infotech open to inorganic growth path

IPO price band fixed at Rs 90-100

3i Infotech Ltd, formerly ICICI Infotech Ltd, is looking to expand its presence across continents with a wide range of multi lingual products.

But if opportunities arise the company will consider inorganic growth route, said Hari Padmanabhan, executive director and president, 3i Infotech, in Ahmedabad on Thursday.

3i Infotech has its presence in eight countries with 15 offices. Unlike its Indian cousins, which have a bulk of share from the services sector and from the US, 3i Infotech derives 46 per cent of its business from India, 27 per cent of its business from the US. The rest of the business comes from the Middle-East and the Asia Pacific region.

"We will look to add between five to seven offices in niche markets in the next fiscal year," said Padmanabhan.

"Eastern Europe markets will definitely be a focus area. We will get into one country and then spread out gradually. This is part of an ongoing strategy," said the 3i Infotech executive director and president.

Asked whether the company will resort to the method of acquiring a company in an untapped market to set a foothold in new markets, Padmanabhan said, "It would really depend on what our requirements are. If the target company has a product that will add to our offerings, and if the opportunity is right, 3i Infotech will look at the possibility of inorganic growth," said Padmanabhan.

Having serviced over 500 clients so far, about 200 new clients were added by the company in the first nine months of the present fiscal. The company has already announced that part of the proceeds of the initial public offer (IPO) will be utilised to clear off loans of about Rs 125 crore.

Some of the short-term lenders include Development Credit Bank, Bank of Rajasthan, IndusInd Bank, Jammu & Kashmir Bank, ING Vysya Bank, IDBI Bank and State Bank of India. The long-term lenders include Canara Bank and Bank of Maharashtra.

The price band of the IPO has been fixed at Rs 90-100 per equity share on a face value of Rs 10 each. The issue will open on March 30, 2005, and close on April 4, 2005.

Commenting on the marginal growth rate in income in the 2003-04 fiscal, as compared with the previous fiscal, Padmanabhan said that this was because the parent company decided to make the BPO arm a separate entity.

The total income for the 2003-04 fiscal was Rs 232.04 crore as compared to an income of Rs 219 crore for the previous year.

"The BPO arm was separated in the 2003-04 fiscal and that accounted for about Rs 40 crore.

"However, the performance this fiscal has been satisfactory with an income of Rs 210.21 crore for the frist nine months ended December 2004," Padmanabhan said.