Financial Daily from THE HINDU group of publications
Friday, Sep 16, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 16, 2005 |
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Info-Tech
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Outsourcing Northgate setting up London data centre, plans pref offer V. Rishi Kumar
Hyderabad , Sept. 15 NORTHGATE BPO Services Ltd is in the process of establishing a data centre in London, UK, to support its global operations with an investment of about $4.5 million (about Rs 21 crore). The Chairman and Managing Director of Northgate, Mr Venkat S. Meenavalli, told Business Line that this would be a co-located centre operating out of London and support Tyco operations. It may be recalled Tyco was acquired by VSNL. "We chose to locate a centre in London to take advantage of low-cost bandwidth, which works out to about one-fifth of what is offered in Singapore. This expansion will be funded through a preferential offer of shares that will raise about Rs 44 crore," he explained. The promoters plan to dilute part of their holding through offer of preferential shares to meet the expansion plans. Post-preferential offer, the promoters' holding would be down at 45.50 per cent as against 51.40 per cent now. As a part of this initiative, Northgate plans to allot shares to Merrill Lynch Capital Markets Espana, Citigroup Global Markets Mauritius, and India Institutional Fund, subject to shareholders' nod later this month at the company AGM. While Merrill Lynch would be allotted 7.13 per cent shares, Citigroup Global Markets 3.22 per cent, India Capital Fund 0.19 per cent and India Institutional Fund 0.19 per cent. The company also plans to change the name from Northgate BPO Services to Northgate Technologies Ltd. The company plans to offer 15,78,250 shares of the face value of Rs 10 each at a price of Rs 276 each, including the premium of Rs 266. The Northgate management also plans to grant six lakh equity shares of Rs 10 each under the Employee Stock Option Scheme 2005. During the year ended March 31, 2005, the company recorded total income of Rs 51.88 crore and a net profit of Rs 7.20 crore.
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