Pune-based Nihilent Technologies has received IPO approval from India’s capital market regulator SEBI. The company had filed its draft red herring prospectus (DRHP) with SEBI on 23 December and received clearance on 16 February, marking the fastest approval of 55 days by the market regulator this year. Nihilent IPO will involve mobilization of INR350 crore (USD50.8 million) through a mix of offer for sale (OFS) and issue of fresh shares.
According to the draft prospectus filed with SEBI, Nihilent Technologies plans to raise INR140 crore by issuing new shares while 24.38 lakh shares will be offered by existing shareholders.
Nihilent – all about acquisitions
The mid-sized IT outsourcing and services company plans to use the IPO funds towards acquisitions and other strategic investments, development of new software platforms, repayment of loans and other for other general corporate purposes. The acquisitions in questions would certainly include the remaining 49% stake in Intellect Bizware Services. Nihilent Technologies acquired 51% equity stake in Mumbai-based SAP specialist in last September.
Led by LC Singh, Nihilent has been on an acquisition spree, very much in line with its stated objective of fling gaps in its product line-up before listing itself on the bourses. During October 2014, the company acquired US-based business intelligence and analytics solution provider GNET. The acquisition expanded Nihilent’s expertise in business intelligence services such as SharePoint and application development.
Nihilent is promoted by Dimension Data and Paracon which own 35% stake each in the company. Dimension Data is a fully owned subsidiary of the NTT Group while Paracon is owned by South Africa’s Adcorp Group. Established in 2000, the company has a presence in the consulting, IT outsourcing and IT services space. The company’s focus is largely on Africa which accounts for 77% of its annual revenues, although the acquisition of GNET has increased its presence in North America. Nihilent also has small operations in Europe, Middle East and Australia.