The Hindu Business Line : KPO firm eClerx plans IPO by next year

Ahmedabad, Nov. 16 The Mumbai-based eClerx Services Ltd plans to be India’s first knowledge process outsourcing (KPO) company to raise Rs 100 crore from the capital market early next year.

The company, which has a number of Fortune-500 entities in its clientele, has already filed its draft red-herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), Mr Anjan Malik, Director, told Business Line here.

The funds raised from the IPO would be used for setting up additional facilities, infrastructure investments and for future acquisitions. Burwood Ventures holds 21 per cent stake in this company.

Turnover

Founded in the year 2000, the company recorded a turnover of Rs 86 crore in 2006-07 and is expected to cross Rs 100 crore in the current fiscal.

Its revenues may be negatively affected up to 10 per cent due to the rupee appreciation. The company closed its second quarter ended September 30, 2007, with a turnover of Rs 53 crore. Its compound annual growth rate (CAGR) in 2005-07 was nearly 80 per cent. For the fiscal 2006-07, its PAT was Rs 40 crore.

The high-end eClerx has three major development centres in Mumbai and employs 1,000 people. Its fourth centre is being set up at Pune and additional centres are being planned for Chennai and Delhi.

eClerx provides data analytics and customised process solutions to global clients from its offshore delivery centres in India. Its specialisation in retail, manufacturing and financial services have brought in more than 15 Fortune-500 companies which increased revenues, reduced operating costs and boosted profits. The company also gets ‘reverse-inquiry’ annually from existing clients. Some of the largest clients in terms of revenue contribution include global corporations with whom the company has multi-year partnerships, Mr Malik said.

About the acquisitions abroad, he said eClerx was looking primarily at companies with specific domain expertise operating in the US and Western Europe where the company can further reduce cost by migrating service delivery offshore.