GSS America sets IPO price band at Rs 400-440

GSS America Infotech, a total IT solution provider, specializing in, IT Infrastructure Management Services and Enterprise Application Integration, IT consulting proposes to enter the capital markets on February 11, 2008 with a public issue of 34,97,495 equity shares of Rs 10 each through 100% book building process. The issue closes on February 15, 2008 and the price band has been fixed at Rs 400 to Rs 440 per equity share of Rs 10 each. After allowing for reservation of 1, 57,495 equity shares for eligible employees, the net issue to public will be 33, 40,000 equity shares, constituting 25.11% of the post issue paid up capital of the company. Religare Securities Limited and Edelweiss Capital Ltd. are the BRLMs for the Issue and Bigshare Service Pvt Ltd is the Registrar to the Issue. The equity shares are proposed to be listed on BSE and NSE. IL&FS Trust Company Ltd. A/c IL&FS Pvt Equity Trust-Tara India Fund-III, a venture capital fund registered with SEBI holds 12.77% stake, Kubera Cross-Border Fund (Mauritius) Ltd holds 10.20% stake and Minivet Ltd holds 3.57% stake in the pre-Issue paid up capital of the Company. The company proposes to utilize the net proceeds of the issue for setting up of state of the art Global Delivery Centre (GDC) at Hyderabad with 1000 seater capacity, setting up overseas offices, meeting working capital requirement and for acquisitions. Presently the company is operating in India from its two Global Delivery Centers in India, one at Jubilee Hills, Hyderabad and second at Hitech City, Madhapur, Hyderabad. Further, GSS also has two GDCs in Chicago, US. The Company's present operations can be classified into two areas namely Enterprises Application Integration, (EAI) Infrastructure Management and Managed Services (IM/MS). Its clientele include major Fortune 1000 companies like Ernst & Young, Blue Cross Blue Shield of NC, BMC Software, Thomson, WR Grace & Co, TDS Telecom, Pepsi Co, etc. As a strategy to derisk, the Company has diversified its portfolio of service offerings by acquiring profit making IT services companies in USA. The Company's total income on a consolidated basis has increased from Rs 63.16 crore in FY2006 to Rs 164.63 crore for FY2007 and further to Rs 204.61 crore during the first 9 months of FY2008. The net profit during the corresponding periods were Rs 10.93 crore, Rs 37.09 crore and Rs 43.75 crore respectively.