IT solutions major, Hyderabad based GSS America Infotech Limited beat the market blues again! Living up to the investor confidence, the company’s share was this morning listed at Rs.430, commanding a premium of 7.5% over the Issue price of Rs.400, when market leaders were experiencing heavy losses and selling pressure.

At the end of the day the equity share of the Company closed at Rs.500, offering a virtual windfall of 25% to the investors on the very first day. The combined volume of business on BSE and NSE amounted to 25 million equity shares. Religare Securities Limited and Edelweiss Capital Ltd. were the BRLMs for the company’s IPO.

This is the second time that GSS America has defied the trend. Earlier, when the IPO was open between February 11 and 15, the issue was fully subscribed displaying that investors still have confidence in the quality Issues. The GSS issue was subscribed 1.08 times, breaking the trend of withdrawal of IPOs by some leading corporates like Emaar MGF and Wockhardt Hospital.

GSS America is a total IT solution provider, specializing in IT Infrastructure Management Services and Enterprise Application Integration and IT consulting, and has recently won the “Excellence Award” from Institute of Economic Studies and its CEO and Managing Director Bhargav Marepally has been awarded with “Udyog Rattan Award”.

GSS America had entered the capital markets on 11th February 2008 with a public issue of 34,97,495 Equity shares of Rs.10 each through 100% book building process in the price band of Rs.400/- to Rs.440/-. The net issue to public was 25.11% of the post issue paid up capital of the company.

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.

GSS America also plans to acquire/establish facilities in Europe, Middle East and Far East. Initially, these facilities will look after the implementation and support functions for the products and eventually they will be independently looking after the marketing functions of the Company in their respective regions. The Company has already acquired office space at Dubai Internet City in Dubai, United Arab Emirates. The Company also intends to utilize funds for Acquisitions. It is a key component of its strategy to grow through acquisitions and strategic partnerships.

Sourced From: Concept Public Relations India Pvt. Ltd

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