Fund raising has not completely dried up. Vishal Information Technologies, which went public last July raising around Rs 42 crore in India, has now gone ahead with a much bigger issue overseas. The IT firm has raised around $33 million (Rs 170 crore) through a GDR issue which entailed equity dilution of around 32%. Though the fund commitment fell short of the targeted $40 million, the fact that the firm has raised $33 million is also commendable in the current investment scenario.

Vishal promoters held 42.8% stake in the firm as of end December which will come down to around 29% after the issue. The firm floated 8.3 million GDRs with each unit converible into six equity shares. As a result the total equity base will expand from around 106 million shares to 156 million shares.

The firm had earlier surprised analysts by coming out with a successful IPO last year in India when markets were turning turtle. The stock price had zoomed unlike most of the IPOs which came in 2008 and the stock is trading at Rs 38 on NSE which works out to Rs 380 factoring in the stock split early this year as against the IPO price of Rs 150 in July 2008.

The investors in the GDR issue, which was managed by Hinduja Bank (Middle East) are unknown as of now.

The Mumbai-based IT-enabled services firm focuses on providing solutions for the print production industry with services like E-Publishing, E-Book, Print on Demand, Data and Document Management, Data Conversion, Digital Library Management etc.

Founded in 2000, it is a subsidiary of Tutis Technologies which is into biometric products, software development and consulting. It has its branches in Mumbai and Chennai with a representative office in UK and UAE. The firm is headed by GS Chandrashekar who is the chairman of the firm and is also the CMD of Tutis Technologies (formerly known as Amex Information Technologies Ltd.) the holding company of Vishal Information Technologies.

The parent company largely has HNI investors in the firm. Institutional holding has been minimal as of last December so it's surprising to see a GDR issue which usually find takers among institutional investors abroad.

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