Byte boom

Mumbai, Jan. 21: Patni Computer Systems, the sixth largest and one of the oldest infotech companies in the country, today announced its initial public offer and said its listing is aimed at building brand equity.

“The IPO is in that direction — to help us build our brand image. You’ll see us in technology seminars and in the media quite often,” chairman and CEO Narendra Patni said.

Patni Computers wants to reach the same heights as tier 1 infotech companies in India to command better prices for its products and services.

Patni is offering 1.87 crore equity shares of Rs 2 each, which will constitute 15 per cent of the fully diluted post issue paid up capital of the company.

Patni recorded total revenues of Rs 903.7 crore in 2002 and Rs 826.4 crore for the nine month period ended September 30, 2003.

“We are uniquely placed in the software services industry with a strong presence in verticals like insurance, manufacturing and financial services,” Patni said.

The company will grow both organically and inorganically and put more thrust in its Europe and Asia Pacific businesses, Patni said and added that the company’s acquisitions strategy was akin to growing a banyan tree and not a forest.

Patni admitted that pricing will remain stable but margins will continue to be under pressure. The markets will no longer tolerate runaway profits. Margin pressure will come from rising labour costs and foreign exchange volatility.