The Hindu Business Line : Goldman Sachs, Citi to invest $52 m in ICSA

Goldman Sachs and Citigroup Venture International Growth Partnership Mauritius (CVC) are set to invest $52 million (about Rs 234 crore) in the Hyderabad-based ICSA (India) Ltd, an embedded software products company that provides solutions for power and gas supply networks.

The ICSA Chairman and Managing Director, Mr G. Bala Reddy, said that the move follows a decision by its board to offer private placement of equity and also raise funds through foreign currency convertible bonds (FCCBs).

The funds raised would be utilised for working capital requirements, expansion and R&D and significantly for overseas expansion, with the possibility of some acquisitions.

Speaking to newspersons today, along with two major investors, Mr Reddy said that while CVC would acquire about 14 per cent stake with an investment of $30 million, Goldman Sachs, a global investment bank, would invest $22 million through FCCBs.

The company provides solutions for energy audit both at the transmission and distribution levels and claims that it has an order book of Rs 1,000 crore.

Its audit and metering solutions have applicability in the growing oil and gas pipeline business as also water management systems.

Mr Ajay Relan, Managing Director of Citigroup Investments India, said: "This strategic move and presence across over 100 countries would help ICSA build on their strengths of providing products to the global marketplace. We believe that there is immense scope for a software products company like ICSA."

The company has stepped up presence in West Asia and Africa and is partnering with some pipeline companies and is also in talks for a distribution management system in Nigeria.

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