The Hindu Business Line : Allied Digital sets IPO price band at Rs 170-190

EXPANSION PLANS: Mr Nitin Shah, CMD, Allied Digital Services Ltd, with Mr Bimal Raj, CEO, at a press conference to announce the company's IPO in Mumbai on Tuesday. - Paul Noronha

Mumbai June 26 Allied Digital Services Ltd, the Mumbai-based IT Infrastructure management services provider, plans to tap the capital market through an IPO of 45.22 lakh equity shares of Rs 10 each.

The company intends to raise around Rs 85.9 crore on the upper end of the price band of Rs 170-190 per share.

A major portion of the issue proceeds will be deployed to set up a global services delivery centre in Mumbai and finance its future inorganic growth aspirations, said Mr Nitin Shah, Managing Director, Allied Digital.

At least 50 per cent of the net issue to the public shall be allotted on a proportionate basis to Qualified Institutional Buyers. Further, 15 per cent of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders, while 35 per cent to the public shall be available for allocation on a proportionate basis to retail bidders.

The equity shares are proposed to be listed on the BSE and NSE.

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

"We will spend about Rs 33 crore on the global delivery centre. It will consist of network operation centre, information security operation centre and also a 250-seater tech BPO," Mr Shah said a news conference here.

The IPO opens on July 2 and closes on July 5. Anand Rathi Securities is the sole book running lead manager to the issue.