The Hindu Business Line : Zylog Systems plans to go public

Chennai March 10 Zylog Systems Ltd plans to enter the capital market with an initial public issue of 36-lakh equity shares of Rs 10 each through the book-building route, according to a press release.

Funds raised would be used to part finance the company's expansion plans. Zylog Systems is investing about Rs 66 crore to set up two offshore development centres at Sholinganallur and Siruseri. It is also looking at acquisitions to deepen its domain expertise, expand service lines and access new markets/verticals, the release said.

It provides client specific technology services such as application development, enterprise infrastructure management and quality assurance and testing. Almost a third of its revenues come through partnerships with systems integrators/solution providers and value added resellers, the release said. It focuses on industry verticals such as telecom, banking and financial services and retail. The company has filed the draft red herring prospectus with the SEBI. Motilal Oswal Investment Advisors Pvt Ltd is the book running lead manager and Karvy Computershare Pvt Ltd is the registrar.