The Hindu Business Line : Zylog to tap capital market to raise Rs 126 cr

Mumbai, July 16 The global IT solutions provider Zylog Systems Ltd plans to enter the capital markets to raise Rs 126 crore at the upper end of the price band of Rs 330-350 per equity share.

The proceeds of the fund will be used to set up two offshore development centres, to fund acquisitions and strategic investments and to meet the increasing working capital requirement. It is offering 36 lakh equity shares with a face value of Rs 10 per share. The issue will constitute 21.89 per cent of the fully diluted post issue paid-up equity capital of the company.

Zylog Systems currently possesses two global development centers, one located in Chennai and the other in New Jersey, US.

Sixty per cent of the net issue to the public will be allocated on a proportionate basis to the qualified institutional buyers (QIBs), 5 per cent of the QIB portion will be allocated on a proportionate basis to mutual funds only. Up to 10 per cent of the net issue to the public will be allocated on a proportionate basis to non-institutional bidders while retail bidders will be entitled to 30 per cent of the net issue. One-lakh equity shares will be allocated to eligible employees.

Motilal Oswal Investment Advisors Private Ltd is the book running lead manager for the issue and Karvy Computershare Private Ltd is the Registrar to the issue.

The issue will open for subscription on July 20 and close on July 25, 2007.