The Hindu Business Line : Mindteck to raise $5 m; to consolidate operations

MINDTECK (India) Ltd, global IT services company, would be raising $5 million through private placement. The funds would be used for the acquisition of Mindteck Singapore Pte Ltd and Mindteck UK Ltd or any other acquisition as part of its strategy to consolidate its operations.

The acquisition process would likely be completed by the year-end, said Mr P.A. Ananthanaryanan, Group CEO, Mindteck.

He said part of the funds would also used to develop the SAP initiative and expand infrastructure facilities.

Mindteck Singapore, which has a strength of 170, focuses on SAP-related work, while the UK entity is engaged with a financial services company with a staff strength of 10.

The proposal to raise funds was approved by the board at its meeting here on October 29.

Net up 184 pc: The company also announced its financial results for the quarter ended September 30, 2005. It recorded a net profit of Rs 74.4 lakh for the quarter, an increase of 184 per cent over Rs 26 lakh achieved in the corresponding period of the previous year. Its revenue for the quarter on a consolidated basis was Rs 11.4 crore.

During the quarter, the company completed the acquisition of Mindteck Middle East and the amalgamation of Mindteck USA Inc with the company's wholly owned subsidiary Mindteck Consulting Inc. These steps were in line with the company's strategy of consolidation of its operating entities.

Mr Anathanarayanan said the company's Embedded System division showed robust growth, helping it expand its development centres. Mindteck's newly established SAP Practice is generating strong traction in the Middle East and the Far East markets.

He said Mindteck planned to increase its employee strength from 450 to 600 by the year.

Mindteck share closed at Rs 34.75 at closing today, gaining by 5 per cent over Friday's closing of Rs 33.10.

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