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New Delhi, Sept. 19

THE Delhi-based Tulip IT Services Ltd has filed draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for a public issue of 90 lakh equity shares.

"Of the total equity float, 81 lakh equity shares are for the public, while the balance nine lakh shares are reserved for eligible employees of the company.

"The issue would constitute 31.03 per cent of the fully diluted post-issue paid-up capital of the company, while the net offer to the public would constitute 27.93 per cent of the fully diluted post-issue paid-up capital of Tulip IT Services Ltd," a company release said here.

While the face value of the equity shares is Rs 10, the pricing of the issue would be determined through 100 per cent book building process. Up to 50 per cent of the issue size shall be allocated on a discretionary basis to qualified institutional buyers (QIBs), and not less than 35 per cent of the issue shall be available for allocation on a proportionate basis to retail bidders.

The equity shares are proposed to be listed on the National Stock Exchange (NSE) and the Stock Exchange, Mumbai.

The objective of the issue is to raise funds to support the expansion of the company's IP/VPN wireless network covering 130 cities.

"Once deployed, this will provide a high uptime, bandwidth on-demand network that can be easily deployed in a minimal time frame. The network will provide both inter-city and intra-city connectivity using a wireless-base last mile access. Tulip is targeting customers including banks for branch/ATM connectivity, corporates for connectivity with branches and dealers, service providers, government agencies, stock brokers, airlines and travel agents," the release added.

(This article was published in the Business Line print edition dated September 20, 2005)
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