Excel Infoways Limited, a Mumbai-based business process outsourcing (BPO) company, plans to acquire an overseas or a domestic firm that is operating in similar line of business. The company has already earmarked Rs 30 crore either to make strategic investments or enter into joint ventures.
“Following the recession, valuations of BPO companies have come down. We are currently in talks with a couple of companies in the US for acquisitions,” said Lakhmendra Khurana, chairman and managing director of Excel Inforways, at a press conference in connection with its initial public offer (IPO).
The company has chalked out an expansion plan entailing a total investment of Rs 77.27 crore. Apart from the Rs 30 crore for strategic investments or joint ventures, the company intends to infuse Rs 47.27 crore for setting up new facilities in Borivali and Kandivali areas of Mumbai.
As part of the expansion, Excel is doubling its seating capacity to 300 from the current 150. It will utilise the proceeds of the IPO, which opens for subscription on July 14 and closes July 17, 2009. The price band of the IPO is pegged between Rs 80 and Rs 85 and the company is issuing 56,67,000 equity shares of Rs 10 each.
