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Bengaluru-based Systems Integrator (SI) Valuepoint Systems plans to raise ₹150 crore by offloading about 30-35 per cent stake in the company and intends to use the proceeds for its expansion. The company has roped in EY as advisor for the fund-raising.
“Digital transformation is the buzzword in our industry right now and we are in talks with a clutch of financial investors keen on investing in technology and the India growth story. We intend to raise this before March,” RS Shanbhag, Chairman and Managing Director at Valuepoint Systems, told BusinessLine in an interaction.
“We are ready to offload up to 30-35 per cent, but this would depend on the investments and the valuation.”
An initial round of discussions are on with a lot a companies from Japan, China and the US. For Valuepoint Systems, a company set up in 1991 and has been a self-funded company till date, this will be the first-ever fund raising, he said.
He, however, declined to name the PE firms the company has initiated discussions with.
“In the space we are in, that is digital transformation technologies and infrastructure management space, the business potential in India stands at $31 billion. There are abundant opportunities in the infrastructure space, with technologies getting integrated in the digital transformation journey, and we want to address that growth story,” he added.
The company has plans for an Initial Public Offering (IPO) in the next five years, which would also provide an exit option to the PE funds.
The company will invest the proceeds in technologies such as cloud services to cyber technologies, and services space like technology support. Further, it will expand its presence to 10 countries in the next 12 months from the present four. The company will also add 500 personnel every year for the next three years to its existing 1,350 employees and intends to triple revenues over the period.
As of March 31, 2018, the company’s revenue stood at ₹290 crore. The company has also reinvested about ₹50 crore of profits into the company.
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