The Hindu Business Line : Allied Digital to enter capital market

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Mumbai Feb. 26 Allied Digital Services Ltd, a Systems Integrator and IT Infrastructure Management Services provider, plans to enter the capital market with an initial public issue of 45,22,435 equity shares of Rs 10 each at a premium to be decided by the book building process.

"We will be able to raise above Rs 80 crore through the issue," said Mr Nitin Shah, Managing Director, Allied Digital Services ltd.

The issue will constitute 25 per cent of the fully diluted post-issue capital of the company.

Bennett Coleman and Company Ltd (BCCL) currently holds 5 per cent equity stake in the company.

The stock will be listed on the BSE and NSE.

The company plans to use the issue proceeds for setting up a technical BPO, a network operating centre, a security operating centre, upgradation and expansion of existing infrastructure, setting up of a new corporate office and a strategic acquisition in the future.

The company recorded net profit of Rs 12.06 crore for the year ended March 31, 2006 and total income of Rs 88.87 crore.

Ananad Rathi Securities Ltd is the book running lead manager to the issue and Intime Spectrum Registry Ltd is the registrar.

The company has 1,200 employees and is present in 72 locations across the country.