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Wednesday, Oct 15, 2003

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Weal Info's Rs 14-cr IPO opens on October 20

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Mr Ken Sagar, Chief International Operations), Weal Infotech, at a press conference in Mumbai. - Paul Noronha

Mumbai , Oct. 14

WEAL Infotech Ltd, which was set up in 1999, is coming out with a public issue of 1.39 crore equity shares of Rs 10 each for cash at par aggregating Rs 13.90 crore.

The issue, opening on October 20, will close on October 27.

The funds raised from the issue will be used to ramp up the company's Hyderabad-based BPO facility, to 500 seats from 50 currently.

According to Mr Ken U. Sagar, Chief (International Operations), Weal Infotech, the capacity scale-up was required as it lent credibility to the operations and would help them forge long-term tie-ups with their clients.

The company has identified BPO as a sector with potential and is targeting "middle corporate America" for business, which he estimated at $150 billion.

According to him, while the bigger US corporates, such as GE, have the resources to set up their own BPO centres in the country, the mid-sized companies do not have the same resources. This segment, he said, depended on third-party players to outsource these jobs.

Within the mid-sized companies' segment, he said, the financial services companies, in particular, held out potential for good business. The company, he said, was targeting projects of $2 million to $3 million, from companies with an average size of $100 million.

Queried on the protest against outsourcing of jobs in the West, he said, the BPO business would continue to grow regardless of these incidents since outsourcing made eminent financial sense.

Mr Sagar added that the dotcom meltdown was due largely to the fact that it was `idea-based.' In contrast, the `BPO-bubble' being need-based, was a more stable operation.

The shares offered through the prospectus are to be listed on the Hyderabad Stock Exchange, BSE, Madras Stock Exchange and the Bangalore Stock Exchange.

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