Patni Computer Systems announced that it had filed a draft Red Herring prospectus with the Securities and Exchange Board of India for an initial public offering.
This will be the first public issue by an infotech company in 18 months, the last one coming from i-flex solutions in June 2002.
Patni has not finalised any dates for the float. The issue price will be determined through the book-building route. The offer comprises issue of 13.4 million fresh shares of face value Rs 2 each, and sale of 5.32 million shares, bringing the total issue size to 18.7 million shares.
DSP Merrill Lynch and Kotak Mahindra Capital Company were the book-running lead managers to the issue, and Citigroup Global Markets India had been named the co-book running lead manager, Patni said in a media release.
Patni is the country's sixth largest infotech company.
The company said the proceeds of the fresh issue would be used for strategic initiatives and general corporate purposes.
The issue translates into 15 per cent of the fully diluted, post-issue paid-up capital, and will be listed on the Bombay Stock Exchange and the National Stock Exchange.
N K Patni, chairman & CEO, Patni Computers, said in a media statement, "The proceeds of the issue will be used to enhance capabilities and coverage through strategic acquisitions and investments."
Patni recorded sales of around Rs 903 crore (Rs 9.03 billion) in 2002.
After the issue, the equity capital of the company will be Rs 24.96 crore (Rs 249.6 million), and the promoter's stake in the company will be reduced to 51.3 per cent from 60.8 per cent.
The holding of the other shareholders, including General Atlantic Mauritius, GE Capital Mauritius Equity Investment and GE APC Technology Investment II (Mauritius), will be reduced to 33.7 per cent from 39.2 per cent.
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