The Hindu : Business : Allsec plans public issue

Online edition of India's National Newspaper
Friday, Feb 04, 2005

Business

Business

Allsec plans public issue

By Shanthi Kannan

CHENNAI, FEB. 3. The Chennai-based AllsecTechnologies Limited is planning to raise Rs. 60 crores through a public issue.

The company has appointed Kotak Mahindra and IL&FS as lead managers. The company is about to complete the due diligence process.

According R. Jagadish, Chief Executive Officer of AllsecTechnologies, the funds thus raised would be used for expansion process. At present, the company had a capacity of 700 seats and proposes to increase the number of seats.

In the past, the market has seen acquisitions of large values example IBM acquired Daksh and also MNCs like GE spinning off BPO division as a separate businesse. So far, this sector has not dipped into the primary stock market.

There are broadly four types of BPO players, namely (a) the U.S.-based companies setting up captive centres in India (Amex / Dell); (b) the U.S.-based BPO providers with offshore facilities in India (Covansys, GlobaVantedge); (c) Indian IT service providers setting up BPO arms (Progeon from Infosys and Spectramind from Wipro); and (d) Pure play BPO providers from India ( AllsecTechnolgoies, and ICICI Onesource).

The players in the fourth category are the ones who are likely to raise capital from Indian or overseas market.

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