The Hindu Business Line : IKF Tech: Betting on expansion

IKF Technologies is seeing significant trading volumes of late on expectation of higher turnover on the back of its expansion plans currently being rolled out. The counter recorded a traded quantity of 1.61 lakh shares (2-week average 1.48 lakh shares) on the BSE as the Re-1 stock closed flat at Rs 3.51. The Kolkata-registered company, which would announce its Q2 results on October 31, is on an expansion mode in three of its business segments - telecom, ITES and bio-fuel.

The company sources confirmed to Business Line that IKF was in the process of making a GDR issue (around 12 crore GDS to be listed on the Luxemburg Stock Exchange in November) to raise Rs 50 crore. It is also issuing 3 crore convertible warrants to three South African entities at an agreed conversion price of Rs 7 each. The non-promoters would pay 10 per cent total consideration upfront and conversion would take place by mid-2008.

The company has floated a subsidiary in the US and another in the UK is also being incorporated shortly to boost sales of its calling cards. In the domestic market it is scheduled to sign an agreement with Tata Teleservices next month for becoming the designated outsourced call centre.

Jayanta Mallick

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