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Thursday, March 23, 2006

R Systems to raise Rs 100cr via IPO

The Rs 81 crore (Rs 810 million), outsourced product development, OPD, company, Gurgaon-based R Systems International will raise around Rs 100 crore (Rs 1 billion) from the primary market to fund its expansion and to further consolidate its position, reports Business Standard.

The company said it had identified third-party product development as its core business area and plans to fund its expansion through first public offer of 44 lakh shares.

The 15-year-old company, which had taken over two product companies three years ago, said it would not acquire any software-product companies and would stick to services in the Rs 2,000 crore (Rs 20 billion) Indian outsourced product design area.

It generated Rs 95 crore (Rs 950 million) out of its total revenues of Rs 158 crore (Rs 1.58 billion) last year from designing third-party software products and is planning to double its staff strength in India from 1,000 to 2,000.

“Over the past three years, the outsourced product design division of the company has shown maximum growth and we plan to make further acquisitions in the software services, especially in healthcare, and to provide product support in our existing areas of operations such as banking, finance, internet content-delivery and supply-chain management,” said Rekhi Singh, Founder and President of the company.

The company currently has nearly 26% of its equity with private equity firms promoted by GE and Intel, the two of whom will together contribute nearly a third of the total shares offered as part of the IPO.

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