The Hindu Business Line : GSS America files for public issue

Hyderabad April 27 GSS America Infotech LTd, the Hyderabad-based enterprise application integration (EAI) and infrastructure management services company, will come out with a public issue soon to raise Rs 120 crore.

"We propose to issue 34.97 lakh equity shares of Rs 10 each. Of this, 1.57 lakh shares would be reserved for eligible employees," Mr Bhargav Marepally, Chief Executive Officer and Managing Director, said.

The company has filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India.

Addressing a press conference here on Friday, he said part of the proceeds would be used to set up a 1,000-seater offshore facility at a cost of Rs 61 crore near Gachibowli in Hyderabad. It would be operational by the year-end.

The company was also in talks with two US companies for acquisition. "We have arrived at an informal agreement with them," he said.

The company, which owns a wholly owned subsidiary in the US, registered a turnover of Rs 116 crore for the nine-month period ended December 31, 2006, against Rs 63 crore for the financial year 2005-06. IL&FS and a few other private investors placed pre-IPO investments to the tune of Rs 35 crore.