Interestingly, CIL had made its initial public offer in February 1999 with an issue of 29,00,000 equity shares of Rs 10 each at par value with a view to finance setting up of a development centre at the prestigious Hi-Tech City here apart from working capital needs. The issue was over subscribed by 21 times. The company is yet to occupy the space at the Hi-Tech City, which is estimated to cost Rs 2.5 crore. The company is yet to pay L&T Infocity for the property.

To facilitate the fresh issue, the company is expanding the authorisedshare capital to Rs 12 crore from the present Rs 9 crore. CIL also proposes to increase maximum limit of the equity holding in the company by the foreign institutions and individuals from the present 10 per cent to 30 per cent in accordance with the Company Act. The company is seeking the approval of its shareholders on the above said topics in the forthcoming annual general meeting scheduled in September 30, 1999. CIL proposes to invest a part of the proceeds from the private placement, to establish two development centres at New Jersy and California with a view to carry out software development in the areas of E-services, E-commerce and E-speak, Pantulu said.