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Adith Charlie

Mumbai, Jan. 13 Mumbai-based technology firm IT People (India) is gearing up for a $25-million issue of global depository receipts (GDR) to be listed on the Luxembourg Stock Exchange. The funds raised via the GDR route will be used for financing the company’s previous acquisitions as well as its future inorganic growth aspirations, Mr Ketan Sheth, Chairman, IT People, told Business Line.

The BSE-listed IT People provides software products and solutions to capital and commodities markets globally. It also provides human resources for the global IT industry. “We intend to strengthen our position in the capital markets space by acquiring niche domestic players with expertise in product development. We will finalise at least 2 buy-outs by the fiscal end,” he said.

The company had acquired a city-based provider of capital markets solutions, Marketplace Technologies, in September last year

In the capital markets space, IT People services companies such as Motilal Oswal Securities and Anand Rathi Securities and bourses such as Bombay Stock Exchange and Kolkata Stock Exchange.

The GDR issue will increase the authorised share capital of the company by about 20 per cent. IT People’s current paid-up capital is Rs 10 crore.

Luxembourg Stock Exchange has been a favourite ground for India Inc to raise funds owing to the speed at which they could close the GDRs/FCCB issue. Further, the cost of raising funds at Luxembourg is lower, compared to NYSE or Nasdaq, where stringent regulations and higher compliance levels mean higher initial expenses.

The company has a target of getting listed by March, added Mr Sheth.

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IT People gearing up for $25-m GDR issue

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