Net4 India Ltd, a listed company in the network and application services space, is raising Rs 8.04 crore through a preferential allotment of shares to Granite Hill India Opportunities Fund.
Granite Hill is picking up 4.7% stake in Net4 with this investment, said a company statement. Net4 plans to utilise the fund for its expansion. The company is setting up a 30,000-square feet data centre in Chennai, and is also planning to expand its service offerings.
This is the second round of private equity investment in Net4. Earlier, it has raised Rs 14.9 crore from Madison India Capital by diluting 9.2 % stake in the company.
Jasjit Sawhney, chairman & managing director, Net4 India Ltd, said, in the statement, “Whilst our existing services continue to grow at a reasonable pace, we are also embarking upon expanding the depth of our service ranges, apart from adding new services in the area of network and application services. This expansion will entail significant investments in infrastructure and product development over the coming years.”
For the proposed expansion, Net4 will also utilise its internal accruals and debt funding. The expansion will be in data centre services and data connectivity services. Under data connectivity services, the company plans to add IP/MPLS VPN services to its portfolio, and strengthen its range of managed, security and SaaS services, the statement added.
Net4 is a Noida-based company, and is a provider of hosted email, web hosting and domain name registration in the Asia-Pacific region. It claims pan-India presence, and has offices in 11 major cities in India. It has also announced the financial results for the year ended by March 31, 2010 today, and posted a consolidated sales of Rs 195 crore, up by 21%, a 36.9% rise in PAT.
Granite Hill India Opportunties Fund is a mid-stage private equity fund focused on India-based and India-related investment opportunties. It targets investments in techonology, infrastructure services, financial services, consumer goods, travel & tourism and communications.
The parent fund, Granite Hill Capital Partners LLC, is based in California, and has made four investments earlier in India. Some of its investments include Elbee Express Pvt Ltd, Manappuram General Finance & Leasing Ltd, and Gokul Refoils & Solvent Ltd.