PE-backed GSS Infotech to raise up to $20M

GSS Infotech Ltd (formerly GSS America Infotech Ltd), a Hyderabad-based company focusing on enterprise applications integration and infrastructure management services, has received its board’s nod to raise as much as $20 million (Rs 110 crore) through various possible routes including qualified institutional placement (QIP), foreign currency convertible bonds (FCCBs) and global and American depositary receipts, the company has disclosed in a statement to the Bombay Stock Exchange.

The firm, which has gone public four years ago, is backed by several PE firms such as IL&FS PE (owns 13.8 per cent stake) besides AIM-listed Kubera Cross Border Fund, which owns 7 per cent stake in the company.

In January this year, PE firm Clearwater Capital Partners, along with the investment firm Beaumaris Investments Ltd, disclosed increasing their holdings in GSS Infotech to 17.42 per cent. As of June 30, 2012, the two firms held 19.77 per cent in GSS Infotech.

Even last December, GSS Infotech had announced that it was planning to raise up to $75 million through FCCB/ADR/GDR and QIP. But it did not come up with any large equity issue. However, the company made a preferential allotment to Upclick Inputs LLC, a US-based firm worth up to $3 million.

GSS Infotech has a market cap of just Rs 52 crore and fundraising to the tune of Rs 110 crore would lead to significant equity dilution. The company’s share price has skidded after hitting a 52-week high of Rs 150 a share one year ago and has lost three-fourth of its value since then.

(Edited by Sanghamitra Mandal)

Leave Your Comment(s)