i-flex solutions announces plans of initial public offering and future business opportunities
17-Aug-01
Listing to provide currency for expansion and increase visibility Editor`s Synopsis • Issue to be listed on National Stock Exchange (NSE) and The Stock Exchange Mumbai (BSE). About 10% of enhanced equity to be offered for IPO, including a minimum 2.5% fresh equity • Existing shareholders being given opportunity to offer their existing shares in the IPO. IPO to comprise fresh issue and shares offered by shareholders • Equity share price to be discovered through the book building process • Capital raised to be invested in both organic and inorganic growth strategies, as well as infrastructure and delivery capabilities • Issue to be managed by JM Morgan Stanley Pvt. Ltd. (Book Running Lead Managers), Kotak Mahindra
Capital Company, Salomon Smith Barney India Pvt. Ltd., DSP Merrill Lynch Limited (Co- Book Running Lead Managers). i-flex solutions limited today announced its plans for an Initial Public Offering (IPO) and expansion into new market spaces. i-flex will list the equity shares on the National Stock Exchange of India Limited and the Stock Exchange, Mumbai after completion of the IPO. The shareholders of the company had earlier authorized the Board of Directors of i-flex to raise equity up to 10% of the enhanced capital through an IPO. i-flex has worked out a unique approach for existing shareholders to unlock the value of their holdings by participating in the IPO. The entire pre-IPO capital would be otherwise locked in for a period of one year as per SEBI guidelines. i-flex is looking at completing the IPO process by the end of the current fiscal year. The capital raised from the proposed IPO will be used by i-flex to consolidate its position in established markets, and make inroads into new markets through the following: • Increased marketing and promotional activities in key markets • Expansion of presence into new markets across the globe • Investments in Joint Ventures, strategic alliances, partnerships, and acquisitions to provide a complete solutions portfolio globally, with companies that complement and synergize it`s strengths, and to capture emerging business opportunities • Scaling up facilities and infrastructure capabilities to enhance delivery capacities i-flex recorded total revenues of Rs. 3,211 million for the financial year 2000-01, a growth of 56% over the previous year (Rs. 2,063 million), and earnings after tax of Rs. 1,100 million, a growth of 59% over the previous year (Rs 693 million). For the financial year 1999-2000, the year on year revenue growth and earnings after tax growth were 43% and 37% respectively. "Indian technology companies are today are being urged by industry pundits and analysts to move up the value chain, invest in intellectual property creation and R&D, while moving towards packaged software products as a reaction to the current economic scenario. They are also trying to create brands and make business models non-US centric by widening their geographic spread," said Rajesh Hukku, Chairman, i-flex solutions limited. "This has been i-flex`s business model from day one, and our sustained growth and high profitability proves our success with this business model. We are perhaps the only Indian company to create a brand that is among the top selling brands worldwide-FLEXCUBE. We have serviced more than 270 customers across 70 countries, and adopted a de-risked business model through our geographical spread." "Our go-to-market strategy revolves around a combination of direct presence, leveraged distribution, and partnerships with global majors including IBM, Compaq, HP, Intel, Oracle and Accenture," said Deepak Ghaisas, CEO-India Operations. "We therefore have a tremendous market reach and access to enhanced business opportunities." About i-flex solutions limited i-flex solutions limited is a world leader in business and technology solutions for the financial services
industry, and offers its customers an end-to-end portfolio unique in its comprehensiveness. i-flex`s flagship product, FLEXCUBE, has been deployed at leading financial institutions across the world. i-flex provides financial institutions pre-packaged products, custom solutions, consulting services, and offshore development facilities. i-flex offers an end-to-end portfolio of solutions that extend to areas such as derivatives, credit cards, wealth management systems and trading platforms. i-flex draws on its rich functional and technology expertise pool to offer strategic and business consulting through i-flex consulting, its consulting division. iflex also offers financial institutions customized solutions through its domain and technology Centers of Excellence, which encompass areas such as Payment Systems, Insurance, e-Brokerage, CRM, Java, ecommerce, Business Intelligence, Facilities Management Services and Internet Security. i-flex has provided IT solutions and services to more than 270 financial institutions in over 70 countries. FLEXCUBE has been ranked among the world`s top two selling wholesale back-office banking systems in the International Banking Systems (IBS) UK Sales League Tables for 1999 and 2000. FLEXCUBE first achieved this ranking in 1999 in just over two years of its launch. FLEXCUBE has also been ranked among the top three retail banking systems by the London based Retail Banking Systems (RBS) for the year 2000. FLEXCUBE is also the only product to be ranked in the top five in both the IBS and RBS rankings. i-flex is an SEI CMM® Level 5 company, and employs 1930 professionals, and has established 12 global support centers across the world to support its worldwide implementations. i-flex has entered into alliances with industry leaders including Accenture, Compaq, Hewlett Packard, IBM, Intel, Microsoft, Oracle, and Sun for marketing, implementing and supporting i-flex`s solutions. i-flex additionally addresses the requirements of various markets through more than 30 distributors who cover over 45 countries.
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