The Hindu Business Line : Four Soft set to freeze acquisition by August

WITH cash reserves set to swell to Rs 36 crore by April after the IPO, Four Soft Ltd, a Hyderabad-based supply chain and logistics solutions provider, is set to freeze a strategic acquisition in the logistics-related field by August this year.

Speaking to newspersons ahead of the IPO to raise Rs 19.87 crore, the Managing Director, Mr Palem Srikanth Reddy and representatives of the lead managers for the IPO - UTI Securities and Centrum Finance - said that the company was close to firming up an acquisition of company in the logistics-related sphere that provides solutions backed by the traditional legacy system solutions.

Such a move would help Four Soft acquire both a new set of customers and enable expansion of e-supply and e-logistics solutions.

Mr Reddy said that this would be possibly completed by August this year.

The company, which raised Rs 8 crore last year from UTI Venture Fund and Andhra Pradesh Industrial Development Corporation together, has cash surplus of about Rs 16 crore, including Rs 8 crore in profit.

With the IPO, it expects to garner about Rs 20 crore. A major part of the funds would be deployed on acquisition and strengthening of the overseas marketing initiatives and forming joint ventures.

The amount raised from UTI Ventures and APIDC is yet to be used.

The investment made in the product development over last four years has been written off.

"This places the company in the right position for further expansion and grow the market," Mr Reddy said.

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