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News Release
September 5, 2000
ICICI announces proposal
to list ICICI Infotech
ICICI (NYSE: IC) today announced
its decision to sell upto 10% of its stake in ICICI Infotech Services
Limited (a wholly owned subsidiary) by means of an offer for sale. ICICI
Infotech would also raise fresh equity capital of upto 10% of the current
capital by means of an Initial Public Offering of Shares. The proceeds
from the equity offering would be used to retire debt raised to finance
previous acquisitions by ICICI Infotech as well as to fund business needs
and future acquisitions. ICICI Infotech plans to file the prospectus with
the Securities Exchange Board of India shortly.
ICICI Infotech has achieved
rapid growth both through a sharp increase in business volumes as well
as acquisitions both domestically and overseas. The acquisitions include
Rohan Software (an Indian software development firm specializing in banking
and financial services), Ivory Consulting (a software services provider
in the US with an annual revenue of about US$10 million) and Object Xperts
(an Information Technology firm based in the United States). The acquisitions
were a part of ICICI Infotech’s global strategy of rapidly establishing
its presence in the major software markets around the world including
USA, Europe and Asia. ICICI Infotech recently tied-up with the Emirates
Bank Group to set-up Tricolour Infotech (a 50:50 joint venture based in
Dubai) with the aim of tapping the Middle-East markets for software development.
It has also entered into an implementation partnership agreement with
System Access – a banking product company based in Singapore. ICICI Infotech
has also commenced projects in certain European countries including Germany
and Ireland.
About ICICI Infotech Services
Limited
ICICI Infotech Services Limited,
a leading software solutions and services provider based in India, was
established in October 1993. The company presently focuses on software
development & web-enabling businesses, IT enabled services and IT
infrastructure, communications and related services. As on June 30, 2000,
the net worth of the company was Rs 481 million, of which the share capital
accounted for Rs 60 million, and the reserves and surplus accounted for
Rs 421 million.
ICICI Infotech has already
done pioneering work in web solutions, e-commerce and m-commerce, and
this expertise will be utilized to take advantage of emerging market opportunities.
As a result of its IT driven innovations and efficient work processes,
ICICI Infotech was awarded the ISO 9001 and IQ Net certifications by Standards
Australia. ICICI Infotech today employs about 750 professionals, of which
about 120 are employed in the United States. The company presently has
an 85,000 sq. ft software development center in Mahalaxmi, with two more
development centers of total area 90,000 sq. ft expected shortly in Vashi
- Navi Mumbai and Chennai.
Except for the historical
information contained herein, statements in this release which contain
words or phrases such as "will", "aim", "will
likely result", "believe", "expect", "will
continue", "anticipate", "estimate", "intend",
"plan", "contemplate", "seek to", "future",
"objective", "goal", "project", "should",
"will pursue" and similar expressions or variations of such
expressions may constitute "forward-looking statements". These forward-looking
statements involve a number of risks, uncertainties and other factors
that could cause actual results to differ materially from those suggested
by the forward-looking statements. These risks and uncertainties include,
but are not limited to our ability to successfully implement our strategy,
future levels of non-performing loans, our growth and expansion, the adequacy
of our allowance for credit losses, technological changes, investment
income, cash flow projections, our exposure to market risks as well as
other risks detailed in the reports filed by ICICI Limited with the Securities
and Exchange Commission of the United States. ICICI undertakes no obligation
to update forward-looking statements to reflect events or circumstances
after the date thereof.
For further investor
queries:
Contact: A.P Singh at
91-22-653 6262 or email at singhap@icici.com
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