Info-tech

Cigniti to raise ₹100 cr this month

KV Kurmanath Hyderabad | Updated on March 12, 2018 Published on December 10, 2014

New facility opened; to hire 6,000 in four years

Cigniti Technologies, a testing tools solutions company, will raise ₹100 crore through a preferential issue to existing shareholders and promoters. It is going to complete the process by the month-end.

The board has okayed the move to allot 17.89 lakh shares to promoters and others on preferential basis at Rs 356 a share, totalling about Rs 63 crore.

It will meet again this afternoon to take a call on the allotment of balance equity shares 25.35 lakh shares.

Hiring

The company plans to hire 6,000 employees in the next four years as it expands its base to non-US geographies in order to de-risk its business. It currently employs 1,400 people, the bulk of whom work in Hyderabad.

“We are going to use the proceeds on the expansion plan and on acquiring firms in niche areas,” Sriram Rajaram, President (Strategy and Corporate Development) of Cigniti Technologies, told BusinessLine.

He said the testing tools segment is growing much faster than the IT industry. While the industry is growing at 13-14 per cent, the testing tools segment is growing at 20 per cent, Sriram said.

Cigniti’s revenue run rate (annualised revenues based on current performance) of the company, which made a turnover of ₹260 crore in 2013-14, is ₹320 crore, he said.

2nd centre in Hyderabad

The firm, with centres in Dallas, London and Sydney, opened its second global test engineering centre in Hyderabad at the Ascendas IT Park in Madhapur. Its first centre, too, is located in the park. The 50,000-sq ft new facility could seat 500 people. “We will fill up the space in the next six months. And will add another 1,000 in the following year,” Sriram said.

The firm will set up a Smart Meter and Energy Utilities lab in the new facility.

Published on December 10, 2014
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