Chennai-based IT firm Ramco Systems raises $52M via QIP

Chennai-based software solutions provider Ramco Systems Ltd has raised Rs 325 crore ($52 million) through a qualified institutional placement (QIP) to expand into global markets, the company said in a stock market disclosure on Thursday.

The company will use the money to retire a substantial portion of debt, support operational expenses to hire people and enhance marketing in global markets.

"Globally, cloud companies are getting good valuation. This is the value that investors attach to IP-led businesses. India is slowly moving towards differentiating product from services led software businesses. We are happy to be leading this curve," said P R Venketrama Raja, vice-chairman and MD, Ramco Systems.

Ramco Systems, a part of the $1 billion Ramco Group, is a software company focused on consulting, products and managed services business. Started as an R&D division of Ramco Industries Ltd in 1992, Ramco Systems was later established as an independent company in 1999. Last year, it raised Rs 123 crore through a rights issue.

The firm is headquartered in Chennai and has 20 offices spread across India, APAC, the US, Canada, Europe, Middle East and Africa.

Ramco Systems' scrip closed at Rs 588.50 each, down 2.24 on BSE in a weak Mumbai market on Thursday.

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