Mumbai-based IT solutions provider Rolta India Ltd has raised $200 million (Rs 1,085 crore) by issuing 10.75 per cent senior notes through its international subsidiary Rolta LLC, the company said in a statement on Friday. The notes will be listed on the Singapore Exchange Securities Trading Ltd.
“The offering was oversubscribed by two times, with demand from an investor base that includes asset managers (72 per cent), banks (10 per cent) and retail accounts (18 per cent). Across the geography, Asia contributed to 47 per cent of the demand and US contributed 43 per cent whereas European investors accounted for 10 per cent,” the statement said.
The money raised will be used for refinancing existing debt to meet working capital requirements and for general corporate purposes. The notes are guaranteed by Rolta and its international subsidiaries—Rolta International Inc, Rolta Middle East FZ-LLC and Rolta UK Ltd—with a tenure of five years.
The company has a good chunk of rupee-denominated debt raised at higher interest cost which it can convert with cheaper dollar debt.
Barclays, Citigroup, DBS and Deutsche Bank acted as the joint lead managers to the notes offering. DLA Piper and Davis Polk were US counsels to Rolta and joint lead managers, respectively. AZB and Trilegal advised Rolta and the joint lead managers on matters of Indian law.
Rolta focuses on IT-based solutions for implementing geospatial and geographic information system, e-business and other related services. Last November, Rolta India acquired US-based AdvizeX for $32 million. In July 2011, the firm acquired 51 per cent stake in Dubai-based public safety and emergency response company ACLS Systems FZC for an undisclosed amount. In the same year, the firm sold its 50 per cent stake in Shaw Rolta to its JV partner Stone & Webster Inc. for $27.5 million.
In the past five years, Rolta had acquired several other foreign firms, including Columbia-headquartered maritime security solutions division of the Mariner Group, LLC, US-based OneGIS Inc., US-based Piocon Technologies Inc. and Canada-based Orion Technology Inc.