Two acres of land allotted by SIPCOTU.S.-based private equity fund invests Rs. 17 crore
CHENNAI: Zylog Systems, a software solutions provider, is investing Rs. 66 crore to establish two offshore development centres one at Sholinganallur and another at Siruseri in Chennai as part of its focus on increasing its offshore business.
Sudarshan Venkataraman, Chairman and Chief Executive Officer (CEO), Zylog Systems, told The Hindu that the company had started the construction of the 80,000 sq. ft. offshore development centre in Sholinganallur.
This centre, which will be ready in three months, would accommodate about 800 software professionals.
The other 1.25-lakh sq. ft. centre at the Siruseri IT Park would be ready in 12-14 months, the investment being Rs. 44 crore. The company had been allotted two acres by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and this facility would accommodate about 1,300-1,400 people.
Mr. Sudarshan said UTI Ventures had invested Rs. 27 crore (around 8 per cent of the equity capital of the company). Besides, the U.S.-based private equity fund Argonaut had invested around Rs. 16.90 crore (around 5 per cent of the equity capital) in Zylog. He said both these venture funds made these investments in March at a price of Rs. 270 per share.
To tap market
To part finance the expansion plans, Zylog plans to mobilise Rs. 100 crore through an initial public issue through the book-building route. The company has filed a red herring draft prospectus with the Securities and Exchange Board of India in this regard, he said.