CRN Network, May 26, 2010, 1000 hrs
Network and application services provider, Net4 India has approved raising Rs 8.04 crore via preferential allotment to Granite Hill India Opportunities Fund, for its expansion drive.
Net4 has also posted impressive results for the year ended March 31, 2010 with the consolidated sales of Rs 195 crore (up by 21 percent), a 36.9 percent rise in PAT at Rs 11.5 crore and a 32.67 percent growth in EPS to Rs 6.66.
Granite Hill India Opportunities Fund comes in as the second PE participant with Net4 diluting 4.7 percent. Earlier Madison India Capital had invested Rs 14.9 crore acquiring a 9.2 percent stake in the company.
The funds will be used for setting up a large 30,000 sq ft data centre at Chennai. “The expansion will also be funded by internal accruals and bank borrowing. This expansion will be in data centre services and data connectivity services. The data center in Chennai will help deepen our range of managed, security and SaaS services. Under data connectivity services we shall be adding IP/MPLS VPN services to our portfolio,” said Jasjit Sawhney, CMD, Net4 India.
With the expansion of the service bouquet and investments in infrastructure, Net4 hopes to significantly increase the growth rates it has been achieving over the last few years. “We have had three consecutive quarters of record profits and now our highest ever quarterly and annual revenues. We intend to continue to sustain this momentum with our expansion plans,” added Sawhney. |