The Hindu Business Line : IBS plans IPO to raise Rs 451 cr

IN a bid to fund its next phase of growth, IBS Software Services Pvt Ltd, the Thiruvananthapuram-based solutions provider for travel, transportation and logistics verticals, expects to come out with an initial public offer to raise about $100 million (Rs 451 crore) by October 2006. The company may dilute around 30 per cent of its equity as part of its IPO plans, said Mr V.K. Mathews, Chairman and Managing Director.

IBS, which currently has some 450 people, plans to hire some 550 professionals over next 24 months. The company is also actively scouting for an acquisition in the Asia Pacific region and expects to complete it over the next six months, he said.

"We are looking at acquiring a technology company, which can bring us a good customer base apart from product profile if any," Mr Mathews said, adding, the company was currently in talks with a couple of them. The acquisition would also help IBS to improve its market penetration, he said.

Meanwhile, IBS expects to hit the market with its passenger services system - iRes, a product that's being jointly developed with US major Cendant Corp, by first quarter 2005. "We are already in talks with a major airline for implementing this next generation passenger services system product", Mr Mathews said.

iRes helps airlines to improve efficiencies, profitability, service quality and ability to respond to the changing market conditions by replacing the less flexible and more expensive legacy passenger services system, Mr Mathews claimed.

IBS and Cendant have jointly invested close to $50 million in developing IRIS, which would help them to take on the likes of leaders Unisys and Amadeus, Mr Mathews said adding, "We expect to have about 3-4 installations next year".

IBS counts the Emirates Group, Qantas, London Heathrow Airport and oil giant Shell among its clientele.

The company, which has been profitable since inception, expects to clock a revenue of $17 million for 2004-05, up from $10 million last year.