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Journalism of Courage
MUMBAI, SEPT 21: HCL Technologies (HCL) is likely to list on the New York Stock Exchange (NYSE) six to nine months after its domestic IPO. The company has already got approval from Securities and Exchange Commission (SEC) and has obtained a ticker symbol from the NYSE, senior officials from HCL said a press conference on Tuesday. The size of the issue will be the minimum required.
The company’s domestic IPO is to be done in November or December this year. The offer will be for a fresh equity of 14.2 million shares, representing 10 per cent of the equity, as permitted for infotech companies under the recent Sebi guidelines. The price will be discovered through the book building process. The company has also indicated a face value of Rs 4 per share in the draft prospectus filed with Sebi.
Post-issue Shiv Nadar’s stake will come down to 73 per cent of the equity. Employees will hold 4 to 5 per cent. The paid-up equity capital of the company is Rs 33 crore and the issue proceeds will be used to fund itsacquisitions globally. "Non-organic growth through acquisitions is a role we will take on very soon," Vineet Nayyar, HCL vice-president said.
The company’s aggregate revenue crossed Rs 1000 crore last year (July 98-June 99). HCL Technologies had a revenue of Rs 650 crore and net earnings of Rs 101 crore representing a growth of 43 per cent and 88 per cent respectively. Unlike most domestic IT companies, HCL revenues are not from software alone. It’s operations are in the areas of technology development, networking services and professional services.
It has 29 overseas offices in 14 countries. It has direct field operations through subsidiary companies in US, Europe, Japan, Australia, New Zealand and Asia Pacific. Its wholly subsidiaries – Intellicent and HCL Comnet – and joint venture HCL Perot Systems together had a revenue of Rs 350 crore last year. Intellicent was a joint venture, HCL James Martin, before HCL bought over the partner’s 40 per cent stake recently.
Answering a query on whether therewould be any conflict of interest with HCL Infosystems, Nayyar said, "There is no clash of interest between HCL Infosystems and HCL Technologies."
