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Thursday, March 23, 2006

R Systems IPO opens on March 28

R Systems International, one of the leading providers of outsourced and offshosre product development services, proposes to enter the capital market on March 28 with an initial public offer, IPO, of 44,08,355 equity shares of Rs 10 each through 100% book building process, report agencies.

Company's CMD Rekhi Singh yesterday said that that the issue closes on March 31 and the price band has been fixed at Rs 210 to Rs 250 per equity share.

The company proposes to deploy the net proceeds of the issue for upgrading and expansion of existing infrastructure at Noida, Pune and Chennai, repayment of outstanding loans and financing working capital requirements.

R Systems will be expanding its IT infrastructure at Noida to provide necessary workstations and latops, servers, software for development, testing operating systems, e-mail and communication equipment for its business at all its locations.

The capital expenditure will cover upgrade of equipment new development tools, and additional requirements arising from increased staff numbers 300 in 2006 and 300 in 2007.

Further, the expansion of the Pune centre consists of acquisition of land adjoining building that will seat approx 175 engineers.

In 2006 the company is in the process of expanding its rented facility at Chennai from the capacity of 180 to 275 seats. This will entail capital expenditure on hardware software and networking.

It also plans to set up own facility in Chennai in 2007 at a gross cost of approximately Rs 3,000 per square feet. This will help create capacity for further expansion in 2008, he added.


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